STRATEGIC PLAN 2021 For a More Innovative, Clean and Inclusive Quebec Economy - Développement économique Canada ...
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For a More Innovative, Clean and Inclusive Quebec Economy STRATEGIC PLAN 2021
STANDING BY BUSINESSES, STANDING BY REGIONS PUBLISHED BY Economic Development Agency of Canada for the Regions of Quebec Montréal, Quebec H3B 2T9 www.dec-ced.gc.ca © Her Majesty the Queen in Right of Canada, represented by the Minister of the Economic Development Agency of Canada for the Regions of Quebec, 2017 Catalogue Iu90-4/57-2017E-PDF ISBN 978-0-660-07591-4
TABLE OF CONTENTS
Message from the Minister 2
Word from the Deputy Minister / President 3
Overview of the plan 4
CED’s role 5
Our environment 7
Our objectives 13
1. Support growing and innovative businesses to foster a robust economy and generate
high-quality jobs 14
Challenges 14
Opportunities for Quebec 17
Taking action 20
2. Support businesses and regions that develop and adopt new technologies participating
in a clean-growth economy 23
Challenges 24
Opportunities for Quebec 25
Taking action 27
3. Support communities to promote their economic diversification and their participation
in an inclusive economy 28
Challenges 28
Opportunities for Quebec 29
Taking action 31
4. Foster the participation of Indigenous peoples contributing to the economic growth
of Quebec by encouraging entrepreneurship and social innovation 32
Challenges 32
Opportunities for Quebec 33
Taking action 35
CED’s commitment going forward 36
Conclusion 41
Endnotes 42
2 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
MESSAGE FROM THE MINISTER
Taking this valuable information into consideration while
adapting to changing economic and technological condi
tions, this Plan aims to help Quebec businesses and com-
munities fully participate in the economy of the future. It
fosters economic growth through innovation, clean tech-
nologies and an inclusive approach. Strategic investments
that support transition, enhance diversification and build on
competitive regional advantages will lead the way towards
this renewed vision for the economic development of
Quebec regions.
As Minister of Innovation, Science and Economic
Development, my overarching goal is to help Canadian
businesses grow, innovate and export so that they can
create good quality jobs and wealth for Canadians. I am
confident that together, by implementing this Plan, we
will put Quebec businesses and communities on the path
It is with much enthusiasm that Canada Economic to long-term growth.
Development for Quebec Regions (CED) presents its
Strategic Plan 2021: For a More Innovative, Clean and
Inclusive Quebec Economy. In sync with the Government
of Canada’s priorities—and more precisely with those of
Canada’s Innovation Agenda—this Plan outlines CED’s
strategic directions for the coming years and maps out
courses of action to achieve measurable results. It is The Honourable Navdeep Singh Bains
imperative that we align our resources with these priorities Minister of Innovation, Science and Economic
and pursue our goals with a strong sense of collaboration Development and Minister responsible for Canada
in order to attain meaningful results. Economic Development for Quebec Regions (CED)
A collaborative approach means improving synergies not
only with other federal bodies, but also with the province
and municipalities. It also means working closely with
Indigenous people, civil society, universities and other
stakeholders to support their efforts to innovate and
increase productivity. CED adopted this approach in the
course of its 2016 consultations, during which the public
and stakeholders expressed their opinions on economic
development issues and challenges Quebec regions
face today.
STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 3
WORD FROM THE DEPUTY MINISTER / PRESIDENT
office will develop a regional intervention strategy tailored
to the needs of its clientele, taking into account the region’s
socio-economic, demographic and geographic features.
From an inclusive growth perspective, the Plan seeks to
reduce disparities between the communities and, as a
result, generate more equal opportunities for economic
and social development.
CED is taking new measures to
reach its targets and help build
a more innovative, clean and
inclusive Quebec economy.
Canada Economic Development for Quebec Regions
(CED) plays a key role in delivering on the objectives of the
Government of Canada, which has committed to fostering Whether you are an entrepreneur, the head of an economic
clean and inclusive growth for our country, creating quality non-profit organization, a government or financial partner,
jobs in every sector of the economy and ensuring prosperity or any other economic stakeholder, I invite you to take the
for all Canadians. time to read this Plan and to call upon our services so that,
together, we can build a more innovative and more com-
I am therefore proud to present our Strategic Plan 2021: For petitive economy in every region of Quebec.
a More Innovative, Clean and Inclusive Quebec Economy,
which defines how CED, working with its development Manon Brassard
partners, intends to help Quebec businesses and regions
rise to the challenges ahead.
The Plan sets out our strategic directions and related objec- Manon Brassard
tives, as well as the renewed intervention approach we will
Deputy Minister / President – Canada Economic
be pursuing over the coming years. It has been developed
Development for Quebec Regions (CED)
and inspired to a considerable degree by the findings of
CED’s Engagement Strategy 2016, an innovative initiative
that involved a series of consultations on specific themes
related to economic development. (The results of these
consultations are outlined in a Summury Report available
at www.ced.gc.ca/CEDialogue)
As you read the Plan, you will see that it is aligned with
the Government of Canada’s priorities to make innovation
and science the drivers of our future economic growth,
in a way that reflects the unique realities of Quebec. Its
success largely rests on the work of CED’s 12 business
offices located across Quebec, which not only fund
projects, but also play a key networking role among the
players involved in economic development. Each business
4 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
OVERVIEW OF THE PLAN
Our vision Our commitment
To be the key federal actor in the economic development An adapted, collaborative, results-based, inclusive
of the regions of Quebec so that all Quebec regions and simplified approach.
and enterprises participate to their full potential in the
economy of tomorrow, while building on their assets.
Support growing and innova- Support businesses and
tive businesses to foster a regions that develop and
robust economy and generate adopt new technologies
high-quality jobs participating in a clean-
growth economy
Objectives
Support communities to promote Foster the participation of
their economic diversification Indigenous peoples contrib-
and their participation in an uting to the economic growth
inclusive economy of Quebec by encouraging
entrepreneurship and social
innovation
Regional Intervention Strategies
Projects Supported by CED
IMPACT: A More Innovative, Clean and Inclusive Quebec Economy
STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 5
CED’S ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies
that make up the Innovation, Science and Economic Development Canada (ISEDC) portfolio. CED is also one of
Canada’s five regional economic development agencies offering programs and services tailored to each region
and providing a regional strategic perspective that supports national priorities.
CED strives to further the Government of Canada’s objectives of promoting innovation, creating quality jobs and fostering
growth in all regions of the country. CED does this by building on collaboration and creating synergies with communities,
other levels of government, the research sector and local stakeholders.
Our mission
CED’s mission is to promote the long-term economic
development of the regions of Quebec by giving special
attention to those where slow economic growth is preva
lent or opportunities for productive employment are
inadequate. In pursuit of this mission, CED supports:
1. Entrepreneurship and CED helps enterprises get started and become more innovative, productive
business performance and competitive at the regional, national and international levels.
2. Development and promotion CED promotes the mobilization of economic stakeholders and attraction
of regional strenths of investment to help each region overcome challenges and become more
prosperous (e.g. Community Futures Program (CFP), Economic Recovery
Initiative for Lac-Mégantic).
6 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
OUR RESULTS FOR 2012–2016*
The projects funded Thus:
by CED contributed to,
among other things:
›› the renewal of Quebec’s
99% of the businesses supported by CED were still in
operation three years after project completion;
business pool with 158 new
business start-up projects;
›› the arrival of more than
25 million tourists from
72% of the firms directly funded by CED recorded
sales growth;
outside Quebec in the
province (who spent over
$14 billion);
›› gross domestic product
(GDP) growth in 16 of the
98% of the businesses supported by CED maintained
or increased the size of their workforce;
17 administrative regions
in Quebec (2011–2014);
of the projects funded by CED could not have
›› the retention or attraction
of 200 international organi-
zations and foreign enter-
88% been carried out to the same extent without
this support.
prises and the injection of
$5 billion in international
direct investment;
›› the development of commu- An analysis of CED’s investments suggests ways to increase the impact
nity economic facilities in of our efforts, including:
the regions through invest-
ments totalling more than • increasing support for innovation by helping businesses at every
$40 million. stage of development;
• supporting business productivity by encouraging the transition to
digital technologies;
• assisting communities with low economic potential, including
Indigenous communities and those with limited competitive advan-
tages, through more flexible and adapted measures;
• providing increased support for growth-generating projects that have
a positive impact in more than one region (inter-regional projects).
* Internal data from CED (2012–2016). August 2016 consultations.
STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 7
OUR ENVIRONMENT
A fast- and ever-changing global economy
Global competition continues to intensify with the rise of emerging economies, the increase in technology
penetration, globalization and the growing importance of global value chains. Moreover, the convergence of
environmental, financial and energy challenges will have an impact on the development of many regions of
the world. This new dynamic could prompt some countries to adjust their approach to international trade, the
environment and security.
In its Global Risks Report 2016, the World Economic Forum identifies a number of trends likely to affect the global
economy, including:
• the aging population;
• the growth of the middle class in emerging economies;
• climate change;
• the rise in geographic mobility;
• urbanization.
The report also pinpoints various risks that could hinder or halt development*, notably:
Economic risks Financial bubbles, structural unemployment, illegal trade, energy price shocks.
Environmental risks Extreme weather events, natural catastrophes, climate change.
Geopolitical risks Governance problems, corruption, conflicts.
Societal risks Food crises, water crises, mass migration, social instability.
Technological risks Adverse consequences of technological advances, infrastructure and network
breakdowns, large-scale cyberattacks, data fraud or theft.
* Source: World Economic Forum, The Global Risks Report 2016
8 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
The World Economic Forum and international and the digital movement. Digital technology is the
institutions such as the Organisation for Economic driving force underlying what is being called the
Co-operation and Development (OECD) are stress- Fourth Industrial Revolution owing to its potential to
ing the importance of guarding against these risks. transform societies and their ways of doing things.
To do so, regions will have to find ways of becom- The growing geographic mobility of workers gives
ing more resilient, and businesses will need to take businesses access to a diversified pool of skilled
steps to better protect their data and intellectual labour. For cities, this expanding urbanization means
property. It will be incumbent on economic stake- more opportunities for partnership with other levels
holders to keep close watch over the situation of government and the private sector.
in order to adjust to such changes and seize the
opportunities arising from technological advances
A promising yet uneven outlook
for Quebec regions
The Quebec economy in numbers1,2,3
Population (2016) Export of goods
and services (2014)
8.3 or 23% of the population
of Canada 102.5 or 16.4% of
million
inhabitants billion Canadian exports
dollars
GDP (2015)
Research and
381 or 19.2% of the Canadian
gross domestic product
development (2013)
billion (GDP)
dollars of Canadian research
and development
Employment (2015)
26.2% (R&D) spending, 55.6%
($4.7 billion) of which
is for industrial R&D
4.1 or 22.8% of employment
in Canada
million
workersSTRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 9
Regional economic dynamics
There are various ways of classifying
Quebec’s regional economies. CED
builds on the classification system
used by the Government of Quebec,
which distinguishes resource-based
economies from manufacturing and
urban economies.4
Resource-based ›› Centred on natural resource extraction.
economies ›› Sensitive to economic cycles.
›› Need to diversify their economies and transform resources into high value-added products
and services.
Manufacturing ›› Possess significant economic weight.
economies ›› Affected by stronger global competition and the expansion of global value chains.
›› Need to innovate and strengthen their competitiveness.
Urban economies ›› Oriented toward services, including value-added services.
›› Play a key role in innovation owing to the presence of world-class industrial clusters and
business ecosystems that are fertile ground for innovative enterprises.
›› Need to innovate and to harness opportunities in big data mining to become “smart cities”.10 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional ›› Regions do not share the same characteristics or economic development potential. For
example, for the period of 2011 to 2036 the Institut de la statistique du Québec (ISQ)
disparities projects demographic growth of more than 30% in Laval and negative growth of nearly
4% in Gaspésie.5
›› Basic requirements must be present for regions to develop. They need quality Internet
access, the ability to rely on a skilled and competent workforce and the capacity to carry
out long-term planning.
›› Economic stakeholders must evaluate local and regional issues, challenges, opportunities
and assets on an ongoing basis in order to provide adapted, place-based support.
Aging population ›› In 2011, 15.7% of Quebecers were over the age of 65; by 2036, that number will have
risen to 25.9%.6
Entrepreneurship ›› 59.1% of small and medium enterprise (SME) owners were over the age of 50 in 2011.7
and succession ›› Only 17.5% of Quebecers looking to go into business consider taking over or buying
an existing company. 8
›› 30% of business owners who plan to retire within the next 10 years intend to close
rather than find a buyer for their company.9
Productivity ›› In 2015, the hourly productivity of Quebec’s business sector ($44.10) was below the
Canadian average ($49.90).10
growth
›› Still in 2015, the hourly productivity of Quebec’s business sector was $2.70 lower than
that of Ontario ($46.80).11
›› From 1999 to 2015, productivity in Quebec grew by 12.2%, six percentage points lower
than in Canada as a whole.12
Innovation ›› Between 2010 and 2012, in general, 61% of Quebec companies innovated, down from
77% from 2007 to 2009.13
›› Between 2010 and 2012, 49.3% of Ontario enterprises engaged in product innovation
compared with only 27.7% in Quebec.14
Internationalization ›› The low Canadian dollar is raising the cost of imported parts used in the manufacturing
of Quebec products and discouraging the acquisition of equipment from the United States.
of markets
›› The rising tide of protectionism in the United States and Europe is creating a climate
of uncertainty for Quebec exporters.
›› Competition in Quebec’s export markets is increasing with the arrival of actors with lower
production costs.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 11
Strengths of the Quebec economy
Educated and ›› In 2015, 68% of Quebecers between the ages of 25 and 64 had a post-secondary
diploma, which is higher than the average for Canada (67%) and the OECD
skilled workforce countries (40%).15
›› Montréal has the highest concentration of high-technology jobs in the country.16
Abundant natural ›› Quebec is the world’s 4th biggest producer of hydroelectric power.17
resources ›› Its forest industry generates $16.6 billion in sales and employs over 60,000 people.18
›› Its mining industry ships over $7 billion worth of minerals annually.19
Vibrant ›› Quebec has 39 industrial clusters.20
high-technology ›› The province is the lead player in Canada’s aerospace industry, with more than
clusters 41,750 jobs, 55% of the sales and 70% of the R&D spending.21
›› In Quebec, 196,000 people specialize in the field of information and communications
technology (ICT).22
›› The province’s life sciences cluster employs over 25,390 people in 457 enterprises.23
›› Quebec companies are offering increasingly specialized products and services.
Dynamic research ›› Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25
working on applied research in a variety of fields.
infrastructure
›› Intramural R&D spending in Quebec accounted for 2.32% of the province’s GDP (2013),
close to the OECD average.26
Access to numerous ›› Quebec enjoys a prime geographic position close to North American and European
markets.
markets
›› 115 million consumers live within 1,000 km27 of Greater Montréal.
›› The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime
access to a dynamic market of 460 million inhabitants.28
›› The Comprehensive Economic and Trade Agreement (CETA) with the European Union
will provide new business opportunities for Quebec firms.
High quality of life ›› According to the OECD’s Regional Well-Being Index, Quebec ranks favourably in relation
to other regions of the world in the areas of education, health and housing.2912 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec ahead. CED will be strengthening existing partnerships and
forging new ones so that it can continue to help Quebec’s
Barring a resurgence of US protectionism, Quebec is businesses and regions harness new opportunities for
expected to remain on the path to modest recovery development and growth.
for the next few years, while continuing to benefit from
both the economic upturn in the US and the low Canadian Quebec can also build on its competitive advantages and
dollar. The higher demand for Quebec products and leverage opportunities for economic growth, provided it
services should lead to increased business reinvestment. does so in respect of the environment and in a way that
promotes inclusion of the various groups that make up its
population. Indeed, the OECD31 recently indicated that,
Governance and inclusive growth going forward, Canada will have to mobilize all available
Major changes are under way in local and regional eco- sources of labour, including its Indigenous populations,
nomic development governance in Quebec. In 2015, the if it is to overcome the challenges of an aging workforce.
Government of Quebec implemented new legislation to The Government of Canada’s objective to promote stron-
decentralize decision-making processes, giving municipal- ger, more inclusive growth should serve as a reference
ities greater autonomy. The regional county municipalities in addressing these major challenges facing Quebec’s
(RCMs) are now officially responsible for local and regional businesses and communities.
economic development.30 Adjustments will therefore have
to be made to our practices and collaborations in the yearsSTRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 13
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development. The
Quebec Economic Development Program—designed to foster business growth, economic development of the regions
and stronger local economies—will be the main tool used to fulfil this mission.
CED will support the development of a more innovative, clean and inclusive economy by targeting four objectives aligned
with several of the outcomes sought by the Government of Canada. CED’s interventions are set out in the Regional
Intervention Strategies, which detail how each business office plans to meet CED’s priorities based on regional strengths.
Objective 1: Support growing and innovative businesses to foster
a robust economy and generate high-quality jobs
Objective 2: Support businesses and regions that develop and
adopt new technologies participating in a clean-growth economy
Objective 3: Support communities to promote their economic
diversification and their participation in an inclusive economy
Objective 4: Foster the participation of Indigenous peoples contributing
to the economic growth of Quebec by encouraging entrepreneurship
and social innovation14 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
1. SUPPORT GROWING AND INNOVATIVE BUSINESSES
TO FOSTER A ROBUST ECONOMY AND GENERATE
HIGH-QUALITY JOBS
Challenge 1: Start-up of innovative businesses
“Innovative economies are more Overall, entrepreneurial activity is very dynamic in Quebec.
The province compares favourably with G8 countries
productive, more resilient, more in terms of the proportion of entrepreneurs in the total
adaptable to change and better population, right behind the United States and the rest of
Canada.34 Quebec also stands out for the growing number
able to support higher living of individuals who want to start a business. There are also
standards. 32” more individuals who take action, that is, one out of ten
people. However, the main obstacle to starting a business
– OECD in Quebec is the lack of funding,35 particularly for innova-
tive projects that require greater risk taking.
Entrepreneurial activity
Challenges of innovationa
among 18–64 year-olds, in 2015
Quebec businesses have to innovate in order to grow and %
stay competitive. Investing in innovation helps enterprises
not only raise their productivity,33 but also boost their com- 20 18.1
mercial potential.
15
To harness this renewed commercial potential, innovative 15
businesses must develop commercialization and export
capabilities. They have to be able to adopt new business
10
models and integrate into global value chains. To meet these
challenges, they must build new organizational capabilities, 5.2 5.6
continuously innovate and make ever better use of digital 5
technologies.
Going digital forces businesses to change how they work 0
and how they design, market, distribute, deliver and get paid Entrepreneurial intentions Business owners
for their products and services. Making these adjustments
requires new skills and expertise, all the while building a Rest of Canada
culture of innovation and experimentation that allows for
the emergence of new practices. Quebec
Source: Réseau M, 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process, a new technology, a new marketing
method (including the commercialization of an innovation) or a new organizational method in business practices. This also includes productivity
and expansion projects, when related to an innovative product or service in which enterprises make R&D investments.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 15
The economic stakeholders consulted as part of CED’s Investing in ICT allows the necessary infrastructure to be
Engagement Strategy 2016 pointed to the insufficient put in place to foster the sharing of ideas and data as well
funding for business creation and start-up as well as for as the development, commercialization and promotion
the pre-commercialization of products and services. A of innovative products and services. Participants of the
key difficulty is being able to find and secure the neces- consultations carried out as part of CED’s Engagement
sary funding—be it from the public sector or from private Strategy identified the delay in adopting technologies,
sources. This issue is further compounded by the fact that particularly those that enable e-commerce, as a key chal-
a large portion of the assets of an innovative business is lenge. This delay can be explained by a number of factors,
typically tied up in R&D activities, and the inherent risks including a lack of information on the benefits of adopting
are generally higher than for other types of businesses. these technologies, insufficient resources for training a
Stakeholders noted that this problem is especially acute skilled workforce and a shortage of capital for the purchase
outside the urban economic centres and urged CED to of the equipment and services required. They also noted
be more proactive in this regard. Some participants also the benefits of enhancing Quebec’s culture of innovation
suggested that the entrepreneurial culture in Quebec is and the need for businesses to better identify their ICT
not being sufficiently promoted and that entrepreneurship, requirements.
in general, is not given enough visibility.
Now, more than ever, Quebec’s businesses, cities and
Challenge 2: Adoption of digital regions must be primed and ready to innovate in order to
adapt and fully prosper from new technologies. And they
information technologies
must have the tools to protect their data from IT threats
Innovation goes hand in hand with the digital shift and such as cyberattacks. In fact, the growth of e-commerce
big data mining. It is a recognized fact that technological has turned information security into a fundamental issue
innovations make businesses more competitive. for productivity and competitiveness.
Use of the Internet, for example,
has led to a 10% increase in
productivity for SMEs, and
those using Web technologies
are exporting and growing
twice as fast as other SMEs.36
– Centre facilitating research and innovation
in organizations (CEFRIO)
These innovations can become a strategic magnet for the
regions. Unfortunately, Canada and Quebec are lagging
in ICT investments and businesses are behind in adopting
these tools. 37 Today, just half of Canadian enterprises
—SMEs in particular—have enabled mobile solutions
across their entire workforce.3816 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
Challenge 3: Efficient innovation management However, participants of the consultations stressed that
Quebec businesses are ill-equipped to go global, to export
According to the OECD, the productivity gap between and to integrate into global supply chains. It was also men-
Canada and the United States is due in part to the lower tioned that these enterprises have difficulty commercializing
level of managerial, commercialization and organization their innovations.
skills on this side of the border.39
Evidence confirms that while Quebec is indeed innovating,
its efforts are not sufficiently generating results, notably
because products and services are not being commercial-
“The comparatively low ized to the extent that they should owing in part to a lack
managerial skill set impedes of resources and skills.43
Canada’s ability to compete in
fast-paced knowledge-driven The innovation capacity of
economies and to adequately SMEs hinges largely on their
meet the needs of dynamic ability to commercialize their
markets.40” products and services.44
– Council of Canadian Academics – Institut de recherche sur les PME,
Université du Québec à Trois-Rivières (UQTR)
This observation also applies when it comes to managing
innovation. The Conference Board of Canada found that the
main challenge Canadian business owners face in terms
of innovation is their lack of the skills needed to ensure its
effective management, particularly in the areas of plan-
ning and assessment.41 The stakeholders CED consulted
confirmed this finding, noting that SMEs have a hard time
carrying out long-range planning, adversely effecting their
competitiveness and their ability to commercialize their
innovations.
Challenge 4: Commercialization of innovation
Expanding Quebec’s offer of innovative products and
services should help the province’s enterprises better inte-
grate global supply chains and become more internationally
competitive. In a context where 71% of the total value of
Quebec exports is with the United States,42 diversifying
Quebec’s export markets may help mitigate some of the
impact of fluctuations in the exchange rate and of possible
American protectionist policies.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 17
Challenge 5: Growth of innovative businesses In CED’s consultations, stakeholders stressed the impor-
tance of leveraging the organizations that specialize in
Rapid growth has a cost. An enterprise’s capacity to grow innovation support in Quebec, and of fostering collabora-
depends largely on its access to capital and to the guidance tion. For example, there are numerous actors promoting
it receives during the planning stage. While this applies to technological innovation in the manufacturing sector and
innovative businesses, their case is somewhat different Quebec possesses a vast network of college technology
in that many of them experience rapid expansion. These transfer centres across the province. There are also several
enterprises need to be given special attention in view of federal players on the ground working to stimulate Quebec
the major economic spinoffs they generate. innovation, including the National Research Council and
the Business Development Bank of Canada (BDC).
Many other organizations, such as the network of regional
New, high-growth innovative export promotion organizations (ORPEX), provide services
firms are responsible for nearly to businesses in the area of innovation commercialization
and export. Some government stakeholders are also active
half of the total employment in this regard, including Global Affairs Canada with its
gains.45 trade missions and CanExport program, the BDC and the
Government of Quebec (Ministère de l’Économie, de la
– OECD Science et de l’Innovation-Export Québec).
With regard to market development, Quebec’s strategic
geographic location offers countless benefits, including
Whereas most business support programs in Canada are proximity to the US market, maritime access to Europe and
intended for SMEs, very few are specifically dedicated new opportunities to explore in Asia. These advantages
to accelerated-growth enterprises. The participants CED should be further optimized to better position Quebec
consulted underscored the funding problems these busi- and its businesses, especially with the coming into force
nesses face when they are looking to expand. of CETA with the European Union. Quebec also offers a
favourable climate and power rates for the establishment
of data hosting companies.
Opportunities for Quebec The province benefits as well from the presence of
Quebec has several strengths that favour business inno- numerous incubators and accelerators dedicated to busi-
vation, one of them being a post-secondary educated and ness start-ups, and from the existence of various programs
creative labour force. The province has the highest ratio of and tools designed to help enterprises transition to digital
R&D researchers in Canada, with 10.2 per 1,000 people (e.g. the SME 2.0 program and CEFRIO’s PME numérique).
employed. It also has a diversified economy that includes
no fewer than 39 industrial clusters operating a range of
sectors,46 such as aerospace, ICT, agriculture, mining and
financial services. The presence of established clusters
and innovation ecosystems facilitates alliances among busi-
nesses, while helping them attract international investment,
become more competitive on global markets and integrate
into global value chains.18 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
“cyber resilience”, a term that refers to the ability of
businesses and organizations to make the transition
Through the Government of to digital while safeguarding against cyberattacks.
Quebec’s Plan d’action en With the global cyber security market expected to
grow by 9.8% per year between now and 2020,
économie numérique, $188M this will mean interesting business opportunities for
Quebec enterprises.47
will be invested over five years.
Lastly, with respect to ICT, Montréal International’s
Profile of the Big Data Industry in Quebec (February
Along with the shift to digital, the high concentration 2016), a study conducted in conjunction with Québec
of expertise in such fields as ICT will help Quebec International, highlights the province’s key strengths
carve out a place for itself in evolving niches like for industry development.48
Ecosystem ›› Growing ICT industry.
›› Dynamic big data ecosystem.
›› High data hosting capacity.
›› Highly specialized research expertise: 1,000 scientists with complementary
areas of expertise.
›› Main application areas of big data account for 40% of GDP.
›› Level of data security among the highest in the world.
Workforce ›› At least 2,100 big data specialists.
›› A deep pool of 105,000 professionals in fields related to big data.
›› More than 16,000 university students enrolled in programs related to big data.
›› Unique cultural diversity and language skills.
Cost benefit ›› Operating costs: 25% lower than in the United States.
›› Power rates and a tax burden that are among the lowest in North America.
›› Highly competitive incentives (R&D tax credits, tax credit for the development
of e-business [TCEB], etc.).
Quality of life ›› Second in North America for quality of life.
›› Lowest homicide rate in North America.
›› Purchasing power among the world’s highest.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 19
ENGAGEMENT STRATEGY 2016 –
PARTICIPANTS’ IDEAS
Participants to the consultations held during CED’s Engagement Strategy 2016 made a number of suggestions.
They were sorted based on CED’s specific mandate and listed below. All of the suggestions are provided in
the Summary Report at www.ced.gc.ca/CEDialogue.
Innovation: Commercialization and global
• Promote the development of innovation manage-
positioning of businesses:
ment skills within businesses. • Accompany enterprises in their internationalization
• Leverage existing organizations to support business projects and support the development of the skills
innovation (tools and funding). needed for their successful implementation.
• Promote exchanges between universities/research • Set up a platform to facilitate understanding of
centres and businesses (e.g. networking activities, and access to existing programs and services.
creation of a portal). • Promote the tools already in place to support inno-
• Fund technology showcases vation and export.
• Raise awareness among businesses about the • Facilitate access to market studies and solutions
importance of innovating and develop a long-term supporting the commercialization of innovations.
innovation strategy.
• Organize networking activities. Digital transition:
• Raise risk tolerance in direct funding to SMEs.
• Support the development of digital skills within
businesses (technical support).
Innovative start-ups and growth • Support business networking in partnership with
enterprises: local stakeholders (e.g. boards of trade) to bring
about a change of organizational culture.
• Raise public awareness about the importance
of entrepreneurship (promotion) and guide • Promote new business ecosystems centred on
entrepreneurs through the process (incubators, digital technologies and the Internet of Things.
accelerators). • Provide digital support for SMEs.
• Support business start-up (accelerators).
• Make a consultancy program available to SMEs.
• Make funds available to enterprises for major
business projects: expansion and growth.20 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1: Legend of challenges
Support the start-up and growth Start-up of innovative businesses
of innovative businesses Adoption of digital information technologies
Efficient innovation management
Commercialization of innovation
Growth of innovative businesses
Courses of action Coordinate federal support measures for accelerated-
growth enterprises in Quebec in partnership with other
Maintain support for business incubators and accel- federal stakeholders such as Export Development
erators and industry clusters to promote the start-up Canada (EDC), BDC and ISEDC and in alignment with
and growth of innovative businesses. the initiative announced in Budget 2016.49
In response to challenges: In response to challenge:
In partnership with key governmental stakeholders, Adapt the current approach to funding to support
help businesses in the start-up and growth phases innovative, high-risk projects by start-up and growth
to innovate (notably to build on their productivity and enterprises (e.g. reviewing funding mechanisms
carry out projects to bridge the gap between tech and granting conditionally repayable contributions).
nology and market).
In response to challenges:
In response to challenges: STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 21
ACTION 2: Legend of challenges
Support the commercialization Start-up of innovative businesses
and global positioning of businesses Adoption of digital information technologies
Efficient innovation management
Commercialization of innovation
Growth of innovative businesses
Courses of action Study the feasibility of implementing a strategy to
promote the integration of Quebec SMEs in global
Provide more coaching and guidance for innovative value chains.
firms to help them build their capacity to commer
In response to challenge:
cialize, particularly through the acquisition of skills in
such areas as long-term planning, in order to be well
positioned on domestic and international markets.
Intensify efforts to implement the federal Industrial
In response to challenges: and Technological Benefits (ITB) policy in Quebec
to help SMEs better position themselves with large
prime contractors and integrate into their value chains.
Maintain support for projects that help businesses
In response to challenges:
secure the certifications and approvals needed for
their products and services to meet international
standards.
Increase promotion (via the Web and social media) of
In response to challenge: the Build in Canada Innovation Program (BCIP), a pro-
gram through which the federal government supports
businesses by purchasing and testing their innovative
Work closely with advisors in Global Affairs Canada’s products and services.
Trade Commissioner Service to provide import and
In response to challenge:
export firms with guidance and tools to improve their
competitiveness.
In response to challenge: 22 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
ACTION 3: Legend of challenges
Support the digital transition Start-up of innovative businesses
of CED-supported businesses Adoption of digital information technologies
Efficient innovation management
Commercialization of innovation
Growth of innovative businesses
Pistes d’intervention Make businesses more aware of the importance of
leveraging and protecting their data and help them
Partner with stakeholders to support projects aimed acquire the tools they need to reach their objectives
at boosting the digital capabilities of enterprises, par- (e.g. big data analysis software and information security
ticularly in the manufacturing sector. More specifically, products).
CED could support development of:
In response to challenge:
›› the capacity of businesses to optimize use of their
digital assets and review their processes;
Provide increased support for innovative firms devel-
›› the skills that businesses need to implement a oping digital technologies so as to promote their
digital plan and adopt technology solutions that emergence and growth (e.g. through direct financial
meet their needs. assistance to businesses or the funding of business
incubators and accelerators).
In response to challenges:
In response to challenges:
Indicators Targets
Number of new growth firm projects with an 500 business projects over 5 years (2021).
“innovation” component.
Number of new NPO projects with an “innovation” 100 NPO projects over 5 years (2021).
component.
Implementation of the “Accelerated Growth Service” Fall 2016.
initiative.
Number of clients registered for the “Accelerated 200 clients over 4 years (31/03/2020).
Growth Service” initiative. (25 clients by March 31, 2017).STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 23
2. SUPPORT BUSINESSES AND REGIONS THAT DEVELOP
AND ADOPT NEW TECHNOLOGIES PARTICIPATING
IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1: Support growing and innovation businesses to foster
a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec
businesses and regions.
Climate change is one of the biggest challenges facing all
countries of the world. Globally, efforts are being stepped
Portrait of Canada’s clean
up to prevent these changes from adversely affecting technology industry (2014)50
human activity, including the economy. In December 2015,
the Paris Agreement on climate change was signed by over
190 countries, among them Canada, which committed to
reducing its greenhouse gas emissions by 30% (from 2005
levels) by the year 2030.
Exports $6.6B
In 2015, Canada joined 19 other
R&D $1.2B
countries in launching Mission
Innovation, a global initiative
Jobs 55,600
aimed at doubling government
investment in clean energy
Enterprises 775
R&D over five years.
Clean technology investmentsb are on the rise in many
countries. Global exports of manufactured environmental
Countries that lead in this area will be well positioned goods doubled between 2005 and 2014. However, the
for the economy of tomorrow, notably in terms of growth rate of the clean technology sector has been
competitiveness. weaker in Canada than the global average. The country’s
share of the world market dropped from 2% to 1.3%
between 2005 and 2014.51 To catch up, the Canadian
and Quebec economies need to address a number of
challenges.
b For CED, clean technology is associated with all technologies that improve environmental performance (e.g. air, water and soil quality), compared
with current and standard technology in a given market.24 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
Challenges in clean growth Producers can also help grow the Canadian market by
exploring new market segments. For example, Canada has
Canada’s and Quebec’s innovation ecosystems offer a 200,000 First Nations members living in northern commu-
number of advantages for clean technology investors: nities that rely solely on diesel fuel for power generation.54
a competitive business climate, world-class research and Conversion to clean technologies could help improve
technology transfer facilities, and a labour pool of highly the environmental, economic and social indicators for
skilled scientists. But as important as these advantages 257 Indigenous communities. Cities are also prime markets
may be, they are not enough to ensure a competitive since the integration of clean technologies into urban infra-
standing for Canada or Quebec in the sector. Additional structure, especially public transportation systems, will be
efforts have to be made to tackle the following challenges. a crucial determinant of their growth in the years ahead.
Challenge 1: Business spending on R&D, innovation Lastly, the adoption of clean technologies is critical to busi-
ness productivity. Encouraging businesses, organizations
and new product development and communities to incorporate clean technologies into
During CED’s 2016 consultations, participants identified their operations is essential to ensuring their long-term
manufacturers’ lack of engagement in R&D as one of competitiveness as well as that of such pivotal Quebec
the main obstacles to clean technology development in sectors as aerospace and ground transportation.
Quebec. Canada ranks 22nd among OECD countries and
6th among the G7 in terms of business R&D spending.52 Challenge 3: Export of clean technologies
It is more important than ever that businesses be given The ability to increase exports is largely determined by
additional support to encourage their investment in R&D. access to global value chains. According to the OECD,
Canada ranks only 37th out of 40 countries in participation
Challenge 2: Clean technology commercialization, in global value chains.55
funding and adoption
This is a problem for Canada’s clean technology industry,
The small size of the Canadian market limits opportunities which is heavily made up of SMEs with little or no ties to
for domestic commercialization of clean technologies. major enterprises. Helping firms in the industry to network
It also makes it more difficult for producers of emerging and integrate global value chains is an essential condition
technologies to achieve economies of scale or obtain to promoting their export growth.
financing (owing to the higher level of perceived risk by
investors).53 Export can counter this problem. Many of the Challenge 4: Global value chains, international direct
participants of CED’s consultation stressed the necessity investment and industrial clusters in Quebec’s clean
of using government procurement contracts to stimulate
the commercialization of clean technologies in Canada.
tech sector
Moreover, the selection criteria used in the public sector Global value chains and industrial clusters are closely inter-
could serve as a reference for prospective private sector twined. Attracting international direct investment, devel-
clients and facilitate decision making when it comes to oping alliances between businesses and organizations and
clean technology purchases. It is important to note that promoting the growth of local enterprises with the potential
one of the aims of the Federal Sustainable Development to play a strategic role in global value chains are all crucial
Strategy is to shrink the Government of Canada’s environ- factors in developing industrial clusters in the clean technol-
mental footprint. ogy sector. Participants in the consultations indicated that
the lack of knowledge among businesses, communities and
consumers regarding clean technologies could hinder the
development of industrial clusters in this sector.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 25
Opportunities for Quebec
Quebec is a Canadian and North American pioneer and
leader in the implementation of environmental regulations
that promote clean technologies and a business environ-
ment conducive to clean growth.c Quebec and California
have been working closely together since 2008 to encour-
age clean technology development in their respective
jurisdictions. Most notably, the two signed an agreement
in 2012 linking their cap-and-trade systems for greenhouse
gas emission allowances.
Still, Quebec’s clean technology producers could be doing
better and taking fuller advantage of opportunities in
numerous sectors and niches, such as:
• aerospace and transportation, where major global
companies are investing in electrification of ground
transportation;
• the green energy sector (e.g. wind power), which
offers opportunities for local SMEs to integrate into
global value chains and export their products and
services to world markets;
• the remote community services market (e.g. Nord-
du-Québec, Îles-de-la-Madeleine), where openings
are available for energy providers capable of supplying
businesses (e.g. those capable of improving energy
storage technologies);
• green infrastructure;
• the biomass waste industry, which offers countless
prospects for businesses operating in the fields of
biogas, biofuels, electricity and chemical bioproducts;
• pulp and paper, where there are opportunities for diver-
sification into bioproduct development.
c The term “clean growth” refers to economic growth that ensures protection of the environment.26 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 –
PARTICIPANTS’ IDEAS
Participants of the consultations held during CED’s Engagement Strategy 2016 made a number of suggestions.
They were sorted based on CED’s specific mandate and listed below. All of the suggestions are provided in
the Summary Report at www.ced.gc.ca/CEDialogue.
• Integrate the principles of sustainable development
into government procurement practices.
• Inform businesses on growth opportunities asso-
ciated with clean technology development and
raise public awareness of the issue.
• Implement an SME development strategy in
the sector.
• Support technology showcases to promote
commercialization.
• Provide financial assistance to exporters of
products and services.STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED) 27
TAKING ACTION Legend of challenges
Business spending on R&D, innovation and new product development
Clean technology commercialization, funding and adoption
Export of clean technologies
Global value chains, international direct investment and industrial
clusters in Quebec’s clean tech sector
Courses of action Support the adoption of clean technologies by fund-
ing business ecologization projects, essentially those
Promote the development of clean technologies by that enable greener business practices (e.g. equip-
supporting projects aimed at: ment purchases, hiring of skilled personnel, business
diagnostics).
›› developing businesses in the sector. CED could
provide funding for test beds, projects to develop In response to challenges:
new products or processes, and commercialization
and start-up projects.
Fund community infrastructure projects that have
›› building business capabilities through the funding
of organizations offering information, coaching, a positive impact on the environment (e.g. green
diagnostic, networking, structuring and technology space improvements, integration of new clean
transfer services. energy sources, use of recycled materials or clean
technologies).
›› encouraging partnership between SMEs and
major contractors bound by Canada’s ITB Policy. In response to challenge:
In response to challenges:
Fund organizations dedicated to building a circular
economy,d industrial ecologye or bioeconomy network
or a renewable energy industry.
In response to challenge:
Indicator Target
Level of annual spending allocated to funding clean $125M over 5 years.
technology development and integration projects.
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact. It consists of
three fields that form a cycle: sustainable procurement, responsible consumption and recycling. The circular economy leads to the emergence
of new manufacturing practices, particularly the use of inputs that are recycled, recyclable and more energy efficient in manufacturing processes.
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy, enabling enterprises
and organizations to optimize resource use.28 STRATEGIC PLAN 2021 – Canada Economic Development for Quebec Regions (CED)
3. SUPPORT COMMUNITIES TO PROMOTE
THEIR ECONOMIC DIVERSIFICATION AND
THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base, thereby strengthening the resilience against
economic uncertainties.
Challenges in economic
Communities with diversified diversification
economies are less vulnerable Challenge 1: Enhancing the competitive advantage
to economic cycles and to the Quebec’s industrial structure is relatively diversified
consequences of globalization, compared to that of the other provinces. That is not the
case, however, for the economies of many Quebec com-
technological changes and the munities. According to Statistics Canada data, 14f of the
depletion of natural resources.56 104 RCMs and equivalent territories in Quebec rely largely
on a single industry for employment (more than 30% of
– United Nations their labour force works in that industry).60 Furthermore,
71 of the 104 RCMs in Quebec have slow economic
growth potential.
These communities provide enterprises with an environ-
ment that is more conducive to knowledge transfer57 and
attract more industries that produce leading-edge tech-
nologies.58 New spending in diversified economies also
has a substantial multiplier effect on economic activity.59
Diversification has become a critical prerequisite for the
growth, innovation and resilience of regional economies,
especially those that are reliant on a single sector. That
explains why CED will continue to support the economic
vitality of all Quebec regions, but will give priority to
regions with a greater need for diversification. To do so,
CED will use its Economic Development Index (EDI) to
measure and compare the economic growth level of
Quebec’s 104 RCMs. The index is used in regional inter-
vention strategies to ensure that a region’s economic
development is based on its assets and its ability to
capitalize on them.
f La Jacques-Cartier, L’Islet, Bellechasse, La Nouvelle-Beauce, Robert-Cliche, Lotbinière, Le Granit, Le Val-Saint-François, Coaticook, L’Érable,
Mirabel, Gatineau, Maskinongé and Caniapiscau.You can also read
