Newfoundland and LabradorAssociation of Technology Industries

2017Annual Report

Overview

Board of Directors

Message from the Chair and Acting CEO

Tech in NL

Business Development

Advocacy and Industry Promotion

Talking Tech

Networking and Collaboration

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Table of Contents

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OverviewABOUT NATIFounded in 1988, the Newfoundland and Labrador Association of Technology Industries (NATI) is a not-for-profit industry association

representing the province’s $1.6 billion technology sector.

PROGRAMS AND SERVICESFocused on accelerating development and growth, NATI delivers programs and services to members including: trade missions;

export and commercialization internship programs; training, workshops, and conferences; intellectual property programs; hacking events;

and networking events to support domestic and international business development.

PARTNERSHIPSRecognizing technology transcends across all industries, NATI works in collaboration with government, industry, and community partners

to maximize opportunities for innovation, technology-driven problem solving, and expanded growth opportunities for members.

ADVOCACYNATI provides leadership in policy development and advocates on the issues that matter most to members and the industry. Today,

NATI continues to advocate for early learning opportunities in technology, capacity-building, and strategic investments to support the

growth of the sector.

PROMOTIONThe technology sector in Newfoundland and Labrador has a compelling story. NATI regularly promotes the industry through media and

other marketing activity, with a growing audience and reach. In addition, the association helps generate opportunities to feature members

publicly in a number of different mediums.

GOVERNANCENATI is governed by a volunteer Board of Directors that provide strategic direction to the association’s leadership and staff.

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2017 Annual Report

Board of DirectorsKendra MacDonald, Chair and Acting CEODeloitte

Ajay Pande, Past ChairNokia

Tony McGrath, DirectorTriware Technologies Inc.

Daniel Penton, DirectorCordelia Holdings Ltd.

Dan Brake, DirectorSequence Bio

Peter Rawsthorne, DirectorBluedrop Performance Learning

Sam Bromley, DirectorWhitecap Scientific Corp.

STAFFKendra MacDonald, Acting CEO

Ron Taylor, CEO (April 13, 2018)

Nancy Andrews, Senior Director of Business and Communications

Joselyn Woodworth, Finance Manager

Habin Haridas, Health Innovation Initiative Manager

Julie Rickward, Marketing and Communications Coordinator

Craig Rowe, Vice ChairClearRisk & Optimized Insurance

Chris Dillon, DirectorTriware Technologies Inc.

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Message from the Chairand Acting CEO

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2017 Annual Report

As we plan for the future and all the opportunity ahead for the technology sector in Newfoundland and Labrador, it’s important to take

stock of the past year’s activities, accomplishments, and milestones. As NATI’s Chair and Acting CEO, it’s my pleasure to present the 2017

Annual Report.

In just over a decade, the technology sector has grown from a $460 million industry to one that generates revenues of more than

$1.6 billion in the province each year. Our more than 165 technology companies are fueling this rapid growth with innovative solutions

for clients in markets that span the globe.

Poised for continued sector growth, 2017 was a pivotal year for NATI as we began to cultivate and mature the partnerships, plans,

initiatives, and activities necessary to accelerate this opportunity and put us on the path to realizing our full potential. As we continue this

work, NATI will be relentless in our efforts to expand early learning opportunities and capacity-building in technology, and ultimately build

a workforce of innovators and problem-solvers that meet the needs of the sector.

Our province’s economic history is rooted in its traditional industries, and while their vitality to the province will not change, the

technology sector has become an increasingly important part of the equation and an enabler of innovation within all industries,

contributing not just wealth but also greater diversity and sustainability to the Newfoundland and Labrador economy. Working with our

industry and government partners, it is clear that technology is being embraced and the desire to collaborate is strong. We are excited

about what this means for our sector, and what we can accomplish together as we grow the new economy.

I would like to extend a sincere thank-you to NATI’s Board of Directors and staff who have demonstrated an unwavering commitment and

dedication to the growth and long-term success of the provincial technology sector. As an organization, we will continue to evolve with

the needs of the industry, offering programs, services, and resources that will best support our members as we maximize both domestic

and global opportunities in technology, together.

Thank you to our members for your continued support, engagement and participation in the many industry programs, services and events

offered throughout the year. It’s my pleasure to continue to serve as the Chair and Acting CEO at NATI, and I look forward to working with

you as we advance this important work in the year ahead.

Kendra MacDonald

NATI Chair and Acting CEO

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$1.6BILLION

INDUSTRY

$400,000of value to

the provincial economy for every

TECH JOB

The technology sector in Newfoundland and Labrador is experiencing significant growth,

creating wealth and jobs in the provincial economy, and demonstrating tremendous

potential for the future. Take a look at the numbers.

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2017 Annual Report

LOCALCOMPANIES

165

$71,800AVERAGE SALARY

higher thanCanadian average

7PER CENT

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Business DevelopmentThrough NATI’s Export and Innovation Program there are a variety of initiatives that help drive domestic and international opportunities for

technology companies based in Newfoundland and Labrador. Initiatives include market research, trade missions, internships, workshops

and training, and a recent addition of an initiative to grow medical technology in the province.

COMPETITIVE MARKET INTELLIGENCENATI has undertaken several initiatives to augment the level of competitive intelligence within the local technology community. These

activities have focused largely on inbound trainers and consultants working with local firms to enhance their competency in these areas.

Through these activities combined with the recent completion of the Global Business Strategy, we have identified markets and sectors of

strategic importance to the Newfoundland and Labrador technology industry including:

USA • California – Oceans, Digital Media & Gaming, IT/ICT

• New England – Oceans, Life Sciences, Digital Media & Gaming

• Washington, D.C. – Oceans, IT/ICT

Other • Brazil – Oceans, ICT

• Eastern Europe – Oceans, ICT

• UK & Ireland – Oceans, ICT

These markets were assessed using the following criteria:

Geographic Region Criteria: • Existing level of in-market activity undertaken by NL firms to date

• Synergies between the regions’ needs and the technical expertise of NL firms

• Overall economic climate of the target market

• Presence of DFATD Consulate and Embassy support

• Business and societal culture

Sector Criteria: • Strength of NL firms – world-class offerings and expertise

• Number of NL firms engaged or already doing business in the market

• Predicted economic outlook and trends, specifically for that sector

• Potential for partnership and technology transfers

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TRADE MISSIONS

NYC 2017 New York, NY

March 20 – 23, 2017

NATI led a targeted trade mission to New York City (NYC) with

a delegation of Newfoundland and Labrador companies with

exporting experience seeking to enter the NYC market. The

mission focused on companies operating in fintech, digital media,

e-commerce, software as a service (SaaS), and cyber security.

The objective of this mission was to provide the three participating

companies with opportunities to increase sales, expand markets,

and help identify new partners, buyers/agents in NYC.

GDC 2018 San Francisco, CA

March 19 – 23, 2018

The Game Developer’s Conference (GDC) is the single

most important conference for the digital media and gaming

industry worldwide.

This market-defining conference drew close to 30,000

delegates who attended over 400 lectures, panels, tutorials and

round-table discussions on game development topics taught by

leading industry experts. The GDC expo showcased all of the most

relevant game development tools, platforms and services helping

to drive the industry forward and featured the annual Independent

Games Festival, the longest running and largest festival relating to

independent games worldwide, and the annual Game Developers

Choice Awards, the premier accolades for peer-recognition in the

digital games industry.

NATI led the Atlantic delegation to GDC with a total of

15 participants including two Newfoundland and Labrador

companies. NATI was the food sponsor for the Canada Game

Nation networking event, and over the course of the week in

San Francisco, numerous business development meetings

were attended by the delegation.

NATI led a pan-Atlantic delegation to

GDC 2018 and sponsored the Canadian

networking event, Game Nation.

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NATI-ACOA INTERNSHIPS

Export Internship ProgramThe Export Internship Program provides hands-on work experience for Newfoundland and Labrador university and college graduates and

contributes towards strengthening the province’s export performance by encouraging SMEs to initiate and expand export activities.

Through this program NATI has been able to provide direct human resources assistance to technology companies, while providing new

graduates with a valuable career start. For 2017-2018’s edition of this program, NATI has expanded the program to include supports for

earlier stage and start-up companies. Eight local technology companies participated in the Export Internship Program this year.

Commercialization Internship Program The Commercialization Internship Program provides hands-on work experience for Newfoundland and Labrador university and college

graduates and strengthens the innovation and commercialization performance of the province by encouraging SMEs to initiate and

expand their business activities.

Through this program, NATI helps address the need for highly-trained staff and management for ocean technology, biotechnology and

information technology industries, as well as early stage research requirements within educational institutions. This internship program

supports technology commercialization training and experience for individuals with an appropriate background in business, engineering,

science and/or other equivalencies. Six local technology companies participated in the Commercialization Internship Program this year.

HEALTH INNOVATION INITIATIVE

Building on a number of successes in health innovation in Newfoundland and Labrador through a series of cafes and hackathons, NATI

received an investment of $826,838 from the Atlantic Canada Opportunities Agency for a new Health Innovation Initiative that will

see the advancement of medical technology in the province. Working together with partners at MCE, Memorial Medical School, the

Department of Health and Community Services, and Eastern Health, the initiative is underway and set to achieve the following:

• A series of Hacking Health networking sessions to link healthcare professionals with entrepreneurs to kick-start

healthcare solutions

• A partnership with the Memorial Centre for Entrepreneurship to develop health-specific business expertise through

initiatives such as an Entrepreneur in Residence program

• Pre-seed funding to accelerate health-related start-up companies and research

• Expansion of the Bounce Innovation Lab at Memorial University to provide physical space and medical expertise for research

and development and start-up companies focused on health technology

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TRAINING AND WORKSHOPS

Design Thinking Workshop February 13, 2018

NATI hosted a half-day workshop on design thinking. Facilitated

by senior management consultant Jeff Parks of Kinoele, thirteen

members attended the event where they gained valuable insight

and tools to create a better online user experience for their target

markets. This highly interactive session garnered excellent reviews,

where attendees gained information and skills for their business.

Media Training March & April 2018

Delivered by Nancy Andrews, Senior Director of Business and

Communications, NATI provided media training to 23 members

over the course of March and April 2018. Offering beginner and

advanced training, the half-day workshops helped technology

company spokespeople prepare to effectively deliver their message

through media interviews.

CPSA Professional Sales Training April 11-14, 2018

NATI offered a three-day workshop to its Export and

Commercialization interns based on the curriculum offered by

the Canadian Professional Sales Association. Certified trainer,

Paul Watts, of Base Over Apex worked with the interns to help

further develop their marketing, sales and client relationship

building skills over the course of the high energy workshop. Upon

completion of the workshop, the 13 participants were eligible to

complete the CPSA exam and receive formal certification.

NATI Knowledge Summit May 16, 2018

As a part of Innovation Week 2018, NATI hosted its annual

Knowledge Summit, where more than 170 delegates attended

the full-day conference. The agenda was set out to combine the

delivery of keynote addresses and breakout sessions on topics

of interest and importance to NATI members and the technology

sector including: tech trends, ocean supercluster opportunities,

educating our youth for the new economy, women in technology,

funding your start-up and disruptive innovation. Keynote speakers

included Duncan Stewart of Deliotte, John Weigelt of Microsoft

Canada, Lee-Anne MacAlear of Schulich Centre of Excellence and

Innovation Management, and best-selling author Jim Harris.

NATI delivers media training to help members

get the most out of media interviews.

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Advocacy and Industry PromotionAdvocacy and industry promotion is central to the work that the association does on behalf of members every day. In doing so, NATI is

not only raising the profile of the industry and creating awareness around its strength, growth and potential, but also providing leadership

as we work to influence and shape policy development to best support the sector now and in the future. These ongoing activities help

effectively position the Newfoundland and Labrador technology industry, its companies, and innovative products and services to domestic

and global markets.

BUDGET 2018Through ongoing government relations activities, NATI maintains an open dialogue with federal and provincial government officials and

remains active on a number of working groups and committees to ensure the voice of the sector is well-represented.

During the 2018 provincial budget consultation process, NATI made recommendations to government to support the growth of the

technology industry and capacity-building through skills development early in the K-12 system including:

• Innovation and technology

• Entrepreneurship

• Cooperative education and other on-the-job training

Budget 2018 committed to a review of the K-12 curriculum, the creation of a Student Mentorship Program, continued commitment to

ocean technology and other industries in partnership with the Federal government, and greater use of digital platforms to better

serve residents.

EARLY LEARNING IN TECHNOLOGYEarly learning opportunities in coding and other curriculum that encourages problem-solving is critical to preparing our children to take

on the jobs of the future economy in Newfoundland and Labrador. The skills gap in technology in the province represents one of the

biggest issues facing NATI’s member companies today, and the demand for skilled workers will only expand in the future. Not only is the

need for building this capacity early in the K-12 system clear, but there is also a demonstrated demand for more of this kind of learning

from students.

Recognizing the importance of these early learning opportunities in schools, NATI and its members delivered Scratch workshops in

several after school programs for a period of 10 weeks in 2017, giving the association further insight into to the need and demand for

the development of digital literacy and problem-solving in schools. Upon completion of this program, NATI continued to advocate for the

implementation of coding in schools for all children, across the province.

The need and demand has been heard, and in April 2018, the roll-out of coding in schools began in the province. The Province in

partnership with Brilliant Labs, and with the support of NATI and industry, put into place funding to take the first step in creating the

learning opportunities that will be necessary for the new economy.

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NATI will continue to be engaged in the process, working

together with the Province, Brilliant Labs, the school board, and

other partners, looking to the next steps and advocating for the

most robust and modern learning opportunities that will set our

students and our economy up for success.

ATLANTIC GROWTH STRATEGYThe Atlantic Growth Strategy’s objective is to drive long-term

economic growth in the Atlantic region by implementing

targeted actions under five priority areas: skilled workforce and

immigration, innovation, clean growth and climate change, trade

and investment, and infrastructure.

In February 2018, the Atlantic Canada Ocean Supercluster was

one of five industry clusters in Canada chosen to receive funding

under the Government of Canada’s $950 million superclusters

initiative, an example of Atlantic collaboration as envisioned by

the Atlantic Growth Strategy.

This was welcome news to the supercluster partners, and

supporters including NATI and its membership. By leveraging

emerging technologies, the supercluster will digitize and optimize

marine operations, maximize sustainable approaches to resources,

and increase safety for those operating in marine environments. It

is projected the Ocean Supercluster will create in excess of 3,000

jobs and generate more than $14 billion to Canada’s economy

over 10 years.

THE WAY FORWARD ON TECHNOLOGYAt a technology symposium hosted at Verafin’s offices in

St. John’s in February 2018, the Government of Newfoundland

and Labrador in partnership with NATI, the Newfoundland

and Labrador Environmental Industry Association, the Atlantic

Canada Aerospace and Defence Association and the Canadian

Manufacturers and Exporters Newfoundland and Labrador

presented the details of the Technology Sector Work Plan. The

work plan includes actions that each of the partners have taken

on to achieve the collective goal of growing the technology

industry and stimulating new private sector employment.

The growth objectives outlined in the work plan include:

• Increase technology sector business activity in

Newfoundland and Labrador by 2022

• Provide 40 high performing technology firms (20 per year

for the next two years) with intensive supports to assist

them to scale

• Increase private sector jobs that support the creation,

development and adoption of technology throughout

Newfoundland and Labrador by 2022

YOUTH IN TECHNOLOGY CONFERENCE – PROMOTING CAREERS IN TECHNOLOGY

For the past 10 years, NATI together with the College of the

North Atlantic and industry partners, have delivered a full-day

Youth in Technology Conference designed to engage, inspire and

inform students about technology and career opportunities in

Newfoundland and Labrador. Attracting more than 400 grade nine

students each year, the conference continues to be in demand year

after year, demonstrating a high level of interest amongst students

and educators for technology-focused programming.

Grade 5 students at Elizabeth Park School engaged in

coding and technology-based learning in the classroom.

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In 2017 NATI put a strategic communications plan into place to raise the profile and generate awareness around the technology industry

in Newfoundland and Labrador through storytelling. To begin to build this momentum, NATI aimed to increase the number of earned

media opportunities by proactively pitching technology sector stories to media.

Early indicators show significant increases in traditional and social media coverage, reach and engagement, and the effective positioning

of NATI as a go-to source of information while also helping to create media opportunities to showcase member companies.

EARLY INDICATORS - EARNED MEDIA RESULTS (since November 2017)

Traditional Media

MORE THAN

AVERAGE OF

MENTIONSARE UP

MORE THAN

ENGAGEMENTIS UP

AVERAGE OF INCREASE OF INCREASE OF

AND

/ MONTH% %

%

MEDIAINTERVIEWSACCROSS ALLMAJOR NEWS

OUTLETSIN NL

NEW FOLLOWERSON TWITTER

EACH MONTH

NEW FOLLOWERSON LINKEDIN EACH MONTH

IN REACH

INCREASE IN ENGAGEMENT

WITH NATI PAGE BY LINKEDIN USERS

MORE LIKES

(INCLUDING FOUR TECH COMPANY PROFILES) (PREVIOUSLY

LESS THAN 2,000 PER MONTH TO MORE THAN 10,000 PER

MONTH TODAY)

20 50 36

3 177

400

%200

77

%22

Twitter LinkedIn Facebook

Talking Tech – Earned MediaYields Results

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Proud supporter of

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Throughout the course of the year, NATI hosts a number of events designed to bring together government, industry and community

partners to network and explore opportunities for collaboration. Event highlights include:

ANNUAL GENERAL MEETING AND NETWORKINGWith approximately 50 people in attendance, NATI elected its Board of Directors on May 30, 2017. Following the election and a formal

review of the year’s activities and accomplishments, the networking portion of the evening began with refreshments at the Gypsy Tea

Room and the opportunity for members and partners to make introductions, reconnect and discuss the industry and business.

SUMMER SOCIAL Always a significant draw, NATI’s summer social took place on July 30 and saw close to 100 members and partners attend for an

afternoon of good food, refreshments, and discussion at The Merchant Tavern. The summer social is a key event for networking during the

mid-summer months when there is less opportunity to connect with industry.

HACKING EVENTS Through the planning and execution of a series of cafes and hackathons, NATI was a key partner in bringing Hacking Health to the

province. Successfully bringing together people including those working both inside and outside the technology and health sectors

with the idea of creating an environment where “People and Ideas Mingle” got significant uptake and sustained interest.

Today NATI continues to be a key driver in ongoing events (see Health Innovation Initiative, Business Development), and recently

co-hosted its first Hacking Oil & Gas event in partnership with NOIA with 80 people in attendance and interest for a second café.

HOLIDAY SOCIALMore than 100 members and partners came out for NATI’s holiday social this year. Hosted at Basho Restaurant on December 6, attendees

were treated to festive food and beverages, while celebrating the holiday season, reflecting on the year’s accomplishments and making

business plans for the New Year.

INNOVATION WEEK On May 14, 2018, NATI together with its 20 Innovation Week partners came together to launch a week filled with more than

20 events ranging from social innovation challenges to debating failure to supercluster opportunities, and more across the province.

With 70 people in attendance at the launch, special guests from the federal and provincial governments, Memorial University,

Genesis and NATI, brought remarks and made industry announcements to help kick off the week, followed by networking, displays

by start-ups and refreshments.

Networking and Collaboration

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NATI and NOIA came together as partners to host the

first Hacking Oil and Gas cafe on digitization, drawing

significant interest and participation from oil and gas,

technology, academia, government and business.

Government, industry and community partners kicked off Innovation

Week with a launch event that demonstrated a shared interest in working

together to foster innovation in the province.

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from NATIThe technology industry is a key driver in our province’s economy, fueled by

talented people, innovation, and an ecosystem that truly fosters growth—

and NATI is proud to be a part of that success. Building on this year’s

accomplishments, we will continue to evolve together with industry and our

partners, delivering programs and services that respond to the needs of our

members and the market, while working to double the number of technology

companies in Newfoundland and Labrador by 2025. Thank-you for your

continued engagement and support!

NATI and its members extend a special thank you to Ron Taylor who, for

more than ten years as CEO, played an instrumental role in expanding the

association’s services, programs and support for members, and leading the

sector through exponential growth and greater global opportunities. We wish

Ron all the best in his future endeavors.

THANKYOU!

NATI.net@NATI_NL

391 Empire Avenue, Suite #5St. John’s, Newfoundland and Labrador

Canada A1E 1W6