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Canada’s World Class

Research and Innovation City Region

City of Toronto June 2, 2011

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TRRA OverviewToronto Region Innovation EcosystemGlobal Trends in Foreign Direct Investment into R&DTRRA AccomplishmentsExecutive Summary

TRRA Presentation on R&D Foreign Investment AttractionCity of Toronto Economic Development Committee

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Launched in 2005Public-private partnership collaborative modelPromote R&D investment in one of Canada’s key economic regionsFunded by Federal and Provincial governments, and wide range of academic and private sector stakeholders Territory broadly defined based on innovation clusters

TRRA Organizational Overview

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TRRA Mission & Goals

Increase awareness of the Toronto Region among global R&D decision-makers and influencers

Retain and grow foreign investment into regional organizations, and attract innovative foreign companies to locate here

Become the pre-eminent source of intelligence on regional research assets and associated international trends

Promote enhanced research intensity among regional businesses

Advance initiatives to strengthen research and innovation capacity

TRRA is a regional economic development organization promoting increased investment in research and innovation to further economic prosperity. TRRA pursues 5 goals to fulfill this mission:

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Top Countries for Total R&D Expenditures

Canada’s global rankings

14th in GDP

10th in GDP per capita

9th in global R&D spending

Source: R&D Magazine, 2010 GERD forecast for 2011*Purchasing Power Parity

$24.3B

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450

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R&D in the Toronto Region - Key Market Features

7.4 million people – 4th in North America with $349 Billion GDP greater than Korea, Finland, Austria or Switzerland

Over $8B private and public sector R&D

Ranked #4 among Major NA Cities of the Future by FDI Magazine (2011/12)

Global leader in competitive R&D costs –less than Tokyo, Frankfurt, New York and London (2009)World class clusters in life sciences and information technologyGlobal advantages in corporate and R&D tax incentives

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R&D in the Toronto Region - Key Industry Features

30% of Canada’s life sciences employment is in the Toronto Region

Toronto Region is Canada’s largest life sciences cluster with 1,800 companies, workforce of 37,000, 5,800 annual science graduates and additional 5,300 graduates of programs relevant to medical technology

53 of the top 100 life science multinationals are in the Toronto Region

33% of Canada’s high-tech employment is in the Toronto Region

Toronto Region is Canada’s largest ICT cluster with over 13,000 companies, workforce of 125,000 and 5,000 annual graduates

20 of the top 25 ICT multinationals are in the Toronto Region

Toronto Region ICT revenues approaching CDN $50 billion

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Advanced Mfg. & MaterialsEnergy & Environment

IT & CommunicationsLife Sciences

Regional Distribution of Innovative Companies

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R&D in the Toronto Region - Key Academic Features

9 Universities

12 Academic Hospitals

8 Institutes of Technology and Colleges

Over 300 Research Institutes

365 Research Chairs

320,000 Full-Time Students

83,000 Graduating Students per Year

11,450 Faculty Members

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R&D in the Toronto Region - Key Talent Features

30% of Canada’s most highly cited scientists, more per capita than the UK, Israel, Germany or Japan

64% of population 25-64 with post secondary education (best in G8)

Continually renewed pool of skilled workers – 83,000 graduates and 47,000 immigrants with degrees

Ranked 2nd by PWC among 26 leading global city regions on intellectual capital and innovation (2011)

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The global market for R&D investment is US$1.1 trillion54% invested by the top 1,000 multinational corporationsCanada ranks 9th in the world with a 2.4% market share

R&D in Canada is highly concentratedTop 100 companies spend $10.2B accounting for 35% of all R&DTop 25 Universities spend $5.7B accounting for 20% of all R&D

88% of foreign investment flows to companies already in Canada56% from US, 31% from Europe

Canada receives $2.1B in FDI for R&D purposes55% to Ontario, 24% to Quebec, 15% to BC

Top 10 foreign subsidiaries in the GTA invest $1.5B in R&DFME’s account for 1-8% of their global corporate R&D spend

Key Global R&D Investment Trends

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Source Country for Foreign Investment in R&D

Source: FDI Markets, May 2011 # of R&D Projects for 2003- 2010

985

191

156

112

114

88

54

48

47

46

289

United States

Germany

Japan

UK

France

Switzerland

Canada

Netherlands

India

South Korea

Rest of World

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Destination Country for Foreign Investment in R&D

Source: FDI Markets May 2011 # of R&D Projects for 2003-2010

356

284

147

130

105

85

71

71

56

52

687

China

India

United States

UK

Singapore

France

Spain

Ireland

Canada

Germany

Rest of World

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Source: FDI Markets , May 2011 Data for 2003-2010

Destination Trends for Foreign Investment R&D

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India

United States

UK

Singapore

France

Spain

Ireland

Canada

Germany

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Canadian FME Share of Global R&D Expenditures

RankCDN

CompanyCanadian R&D Expenditures

CAD $000

Global R&D Expenditure CAD $000

Canadian Expenditure as % global

5 IBM Canada 556,500 6,646,000 8.4%

10 Ericsson Canada 197,000 4,935,000 4.0%

12 sanofi-aventis Group 182,000 7,266,000 2.5%

15 GlaxoSmithKline Canada 148,000 7,310,000 2.0%

21 Pfizer Canada 109,000 8,907,000 1.2%

27 AstraZeneca Canada 84,000 5,035,000 1.7%

34 Boehringer Ingelheim (Canada) 63,500 3,943,000 1.6%

38 Honeywell Canada 55,000 1,519,000 3.6%

41 Bayer 50,000 4,354,000 1.1%

72 Xerox Canada 22,000 959,000 2.3%

Source: Research InfoSource and BIS Scoreboard, 2010 R&D Investment for 2009

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Actively selling the Region for new foreign R&D investment 44 prequalified leads, 36 meetings with prospects, 26 business cases developed and 6 investments

Building awareness of the Toronto Region through marketing52,600 visitors to the website (+20%VYA); 30% from outside Canada141,000 document downloads (+135% VYA)

Accelerating innovation capacity buildingWater in Urban Watersheds technology demonstration projectModernizing Ontario’s clinical trialsIncubating Nano Ontario

Producing insightful economic researchGlobal R&D trend reports and innovation cluster studies 17 Sector Asset Maps and Innovation Profiles

TRRA Performance Metrics

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TRRA Engagement with City of Toronto

• Agri foods sector development program (2009-2010)

• A recipient of the City of Toronto’s Competitiveness, Creativity and Collaboration Investment Program (cluster analysis)

• Technicity IT sector event in November

• Partner in IT sector data analysis for final report

• Moderator on panel

• Quarterly meetings with Invest Toronto

• Cooperation on economic database acquisition

• Partnering with Business, Retention and Expansion team on R&D investment prospects

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Canada is among the top countries in the world for research and innovation

The Toronto Region is the epicenter of R&D investment in Canada

R&D investment is critical to the future economic prosperity of the Toronto Region

R&D is concentrated in large enterprises and foreign multinational corporations play a critical role

Executive Summary