October 29, 2018 - Vancouver, British Columbia

Date: October 29, 2018
Location: Vancouver, British Columbia

Total participants

Q1) What does a stronger western Canadian economy look like 10 years from now?

• How do we define economic success? When we look at growth/success, we need to look at the definition. Scotland says there is only growth with inclusion. We should look at this blended value (financial and social).
  • PSPC could look at including socialenterprise within their $20B of procurement annually
  • Success is about healthier communities
• Would be nice if we had agreed-upon financial/social indicators that address inclusion (e.g. certification of social mandate – B corp)
• Including women on boards has shown to improve a company’s bottom line
• Tech sector is going to result in massive job destruction in 10-20 years. Kids aren’t orienting their education towards specific sectors as a result. His company sells products to pharmaceutical co’s, etc. Sees doubling of production in manufacturing facilities, but reduced workforces. Automation is changing value chains at multiple levels. Tech sector is destroying jobs due to the goal of achieving efficiency.
• OECD uses well-being measures that are comparable across countries. Canada ranks well. Doesn’t take into account the richness of sectors/regions, but it’s worthwhile to examine these measures. OECD and StatsCan are working on developing measures of GDP that include well-being. So the measures are there, but it’s a matter of using them more. Gov’t should use them more.
  • TMX consultations failed to take account of environmental impacts, which proved to be a setback
• Maybe it’s not a binary thing. Maybe it’s developing economic indicators
• Gov’t of BC’s 3 priorities: make life affordable; delivering services; developing sustainable and innovative economy. Genuine progress indicator (GPI) – is in early days. Looks at economic, social, and environmental progress. Growth is the focus, focus is on how the 3 agendas move together concurrently.
• BC is aging like the Atlantic provinces. We’re getting older faster.
• Traditional natural resources industry. We need to de-silo the conversation. There’s an opportunity to knit our narrative together. One Province One Economy initiative. This is how they engage with urban BC. 25 Indigenous bands have relationships with businesses that are servicing the mines. There is a lot of fear around automation. Opportunity to de-silo the conversation and not be ashamed of the mining industry.
• Tech industry is part of the supply chain. Everything is interconnected.
• One of the biggest challenges: maintaining western gateways and corridors. Involvement of Indigenous communities. Perspective that Indigenous cmmties don’t want to be involved is incorrect. Kwikwetlem FN is being turned into a large industrial area by them (taking advantage of their land, they are leasing rather than selling). In the Lower Mainland, there is no land left. So development will be done spatially. We need a national transportation strategy.
• Vision: is in precision health. It could and should change our health care, but it’s not being implemented. Is happening in a piecemeal fashion. We could lead in this area. This revolution will pass Canada by if we don’t move fast. Other countries will pass us by. Patients want this.
• Would rather be a seller, as that leads to economic growth.
• Currently we mostly ship our biosamples to the US for genomic analysis. It should be happening in BC.
• We’re all looking at taking an integrated approach (financial and social). We’re looking at building the economy to solve other issues.
• In the US, insurance companies have huge incentives to adopt precision health. In the Canadian system, we don’t have that incentive.
• Would be interesting to ask to what extent social values influence…
• The data that’s generated from precision health is attracting the private sector to innovate. UBC is creating startup co’s that will take images to promote machine learning. Life sciences is growing rapidly. We need to wrap our arms around a big picture.
• In transportation, there’s a push to get big data.
• Push is towards a more inclusive economy.
• 10 years is not enough time.

Theme #1: Economic success indicators

• How do we define economic success? When we look at economic success, we need to look at the definition.
• Genuine progress indicator (GPI) is in early days (BC Government initiative). GPI looks at economic, social, and environmental progress. Focus is on how the 3 agendas move together concurrently.
• OECD uses well-being measures which are comparable across countries.
• OECD and Statistics Canada are working together to develop measures of GDP that include well-being.

Theme #2: The opportunity of precision health

• There is significant opportunity in precision health. It could and should change our health care, but it’s not being implemented.
• In the US, insurance companies have huge incentives to adopt precision health, but we don’t have those incentives in the Canadian system.
• The data that’s generated from precision health is motivating the private sector to innovate.

Theme #3: Automation

• Automation is changing value chains at multiple levels. The tech sector is destroying jobs due to the goal of achieving efficiency.
• There is a lot of fear around automation, due to the potential for job losses. One participant noted that they saw a doubling of production at manufacturing facilities, but reduced workforces.

Q2) What are the best ways to spur new growth in western Canada

• Why don’t we incent entrepreneurs to innovate?
• Challenge in conversations with gov’t: mining industry isn’t competing with other sectors, it’s competing with Chilean mining sector.
• Demand for solutions. You can only raise capital if you have a strong economic foundation, supplemented by environmental and social foundations.
• At Bank of Canada, have been grappling with appreciating exchange rate. Which issues are getting in the way of investment? Cost of doing business is increasing. What’s keeping firms in Canada? It’s the non-business personal/social reasons. We need to see our standard of living keeping up
• It’s so hard to build a business in BC. We tell our younger entrepreneurs to not think about starting here b/c we’re not set up as an economy to be big risk-takers. Encourage them to find early adopters in the US instead. People want to raise their kids here but they’re struggling. We can’t attract B-level people, let alone managers. As soon as they see the cost of living (housing, food, taxes) they don’t want to work here.
• We need to incent people to come here and take risks. The reality is that the world is global now.
• Interesting paper by Peter Nicholson (explained why innovation adoption rate in Canada is low). Because wage growth is low, and taxes are low, so it’s profitable to keep innovation low. Canada has been at 80% of US GDP ratio for many years now. In 2010-2016, Canada’s productivity was higher than in US.
• Product development cycle is fast, so adoption of technologies goes with that cycle too. That’s why there’s high innovation.
• Procurement. Federal gov’t is a tough nut to crack. Innovative Solutions Canada is a new approach.
• 5% of US federal procurement has to go to new technologies, money comes from a central fund.
• Innovation Canada. Incentives and models aren’t inducing innovation. Infrastructure agmt’s between feds/prov’s are now including social requirements (e.g. for women, minorities).
• Solution: Level the playing field or adjust the supply chain.
• What is the local economic benefit that you’re creating?
• The Port Authority included a social value component. Now YVR requires that 1% of revenue, as well as % of skilled jobs, go to the Musqueam.
• For clean tech, we need to promote other regions in BC.
• Supporting access to broadband. Minister made announcement in Haida Gwaii. Need to figure out how to make use of connectivity.

Theme #1: Difficulty in spurring new growth here

• It’s difficult to build a business in BC. We tell our younger entrepreneurs to not think about starting a business here because we’re not set up as an economy to be big risk-takers. We encourage them to find early adopters in the US instead.
• People want to raise their kids here but they’re struggling. We can’t attract B-level people, let alone managers. As soon as they see the cost of living (housing, food, taxes) they don’t want to work here.

Theme #2: Need to build incentives to spur growth

• Because wage growth is low, and taxes are low, it’s profitable to keep innovation low. Canada has been at 80% of US GDP ratio for many years now. In 2010-2016, Canada’s productivity was higher than in US.
• We need to incent people to come here and take risks. The current incentive models aren’t inducing innovation.

Q3) What will help the Indigenous economy continue to grow?

• Need to ensure we have the best infrastructure (transportation, telecommunications, health care, etc) as this is an enabler of growth. You can’t build innovative world-class co’s without this.
• We have to be a competitive place for capital. We’ve gone from being tax-competitive to non-competitive. We are on borrowed time with real estate.
• BC’s international image has changed over the past 5 years.
• Worrying: MITACS students from India doing internships, and up until that point Canada wasn’t on their radar.
• Access to capital/access to talent are big issues.
• The tide is turning on attracting international students to Canada. We’re definitely on their radar now. Role of academic institutions on ec dev:
  • Academic institutions have woken up (esp SFU and UVic). We haven’t a lot to offer wrt ec dev:
    • Tiny house project. Includes multiple programs within UBC to develop culturally sensitive tiny homes that are sustainable. Came up with a plan for the homes (less than 500 sq ft). Homes are built within a cluster. Builders Without Borders came to train Indigenous people in the cmmty to do construction work. Now there’s huge interest from other Indigenous cmmties.
    • Water monitoring/purification pilot. Some form of program to scale these pilots could go a long way to solving a huge social problem that we have.
    • Helen can send these project descriptions.
• Need to approach Indigenous cmmties by asking them how they’d like to be involved (the big picture). It’s helpful if the project is local.
• Thinks about finalists in a competition. Next step is to make a livable income and a local economy. We can’t dump the white version of “success” onto Indigenous cmmties. Difference in goals. Priorities will differ among Indigenous cmmties. 97% of buying is under $25,000. How do we evaluate success 10 years out?
• Reconciliation and the journey that we’re on. This is very separate. It’s about tailoring to individual cmmties. Everyone wants to have purpose and hope, and this looks different to different cmmties. We should stay away from using the current wording on question #3. This is the wrong question. Indigenous cmmties want to write their own plan.
• When you’re making a plan, you need to be specific.
• Generation that’s come in after us will have a different view of what the economy should look like.
• Attracting skills: what she hears from businesses is that in trades, we need to fill this gap. Can we bring in more people into this class via immigration? These jobs won’t likely be automated. Young people don’t want these jobs. Indigenous students have benefitted from trades training. How many people do we bring in from outside Canada for these jobs?
• Mining industry wants to see where things go re: skills dev’t.
• Water parks are made out of composites. Big impacts.

Theme #1: Need to build adequate infrastructure

• We need to ensure we have the best infrastructure (transportation, telecommunications, health care, etc.) as this is an enabler of growth.
• You can’t build innovative world-class companies without this.

Theme #2: Indigenous version of development and success

• We need to approach Indigenous communities by asking them how they’d like to be involved re: the big picture. It’s helpful if projects are local.
• We can’t dump the white version of “success” onto Indigenous communities. There is a significant difference in goals, and priorities will differ among Indigenous communities.
• Everyone wants to have purpose and hope, and this looks different to different communities.

Theme #3: Issue with WCGS question #3 (What will help the Indigenous economy continue to grow?)

We should stay away from using the current wording on question #3. This is the wrong question. Indigenous communities want to write their own plan.

Q4) How can we improve economic participation in the west of underrepresented groups, including women, youth, and new immigrants

• Continued support for childcare. Important to continue this. Need to solve this problem in the tech cmmty.
• Representation of women on corporate boards had good progress, but it’s not as good now. Requires action.

Theme: Ideas to improve economic participation of underrepresented groups

• There is a need for continued support re: childcare, in order to improve economic participation. Need to solve this problem particularly in the tech community.
• There had been good progress re: representation of women on corporate boards in the past, but it’s not as good now and requires action.

Q5) How can governments, industry, and western Canadians work together to grow the regional economy?

• Composites Research Network: $9M went into that project years ago. When she thinks about what that has led to now, there have been many impacts. The value of this project level of investment, to grow something, has been spectacular. That level of collaboration with academia and governments is key.
• Gets frustrated with consultations. Gordon Campbell was Premier at the time, had economic summit from leaders from all parts of the economy (post2008). Unexpected ideas came from that summit.
• Federal government can play a convenor role, as something they can do year after year on relevant issues (eg. Economy, health care). Appreciates the role that WD plays in consultations.
• First principle of strategy is getting stakeholders to own it. Canadians are good at collaboration.

Theme: Collaboration and federal government as convenor

• The Composites Research Project is a good example of investment leading to something spectacular. That level of collaboration with academia and governments is key.
• The federal government can play a convenor role. This could be something they do year after year on key issues (eg. economy, health care). One participant appreciated the role that WD plays in consultations.
• The first principle of strategy is getting stakeholders to own it. Canadians are good at collaboration.