INNOVATION PRODUCTIVITY PROSPERITY · 2013-12-20 · innovation strategy. Later, CCCE member Tom Jenkins of Open Text Corporation was selected to lead an independent review of federal

INNOVATIONPRODUCTIVITY

PROSPERITYANNUAL REPORT 2012

CCCE members collectively lead companies with:

$4.5trillion

in assets

$850

billion in revenues

1.4 million

employees

$3 billion

invested annually in R&D

Source: BHP Billiton Canada Inc.

Source: Coril Holdings Ltd.

ANNUAL REPORT 2012 CANADIAN COUNCIL OF CHIEF EXECUTIVES 1

CONTENTS

ThE CaNadiaN COuNCil Of ChiEf ExECuTivES brings CEOs together

to shape public policy

in the interests of a

stronger Canada and

a better world.

Source: Husky Energy Inc.

2 Message from the Chair

4 Message from the President and CEO

6 Taking the Lead

16 Year in Review

21 Events & Publications

22 Board of Directors

24 Membership

29 Council Staff

Cover photo courtesy of Canadian Light Source Inc.

ANNUAL REPORT 2012 CANADIAN COUNCIL OF CHIEF EXECUTIVES2

Canadians have a reputation for modesty, but surely the time has come to bury the

old stereotype. When we have something to celebrate, we don’t hold back. Witness the huge

outpouring of national pride after the success of Canada’s “Own the Podium” drive at the 2010 Vancouver Winter Olympic Games.

Confidence also seems to be driving Canadians’ views about our country’s long-term economic future. Since the recession began in 2008, our economy has continued to perform better than those of most other major development nations. Our banking system has been lauded as one of the most stable in the world and our government finances are in relatively good condition, with one of the lowest net public debt levels of any industrialized country.

Prime Minister Stephen Harper recently spoke of Canada as a “great country rising,” adding that we are in much better shape fiscally than traditional economic powerhouses such as the United States, Europe and Japan. The Prime Minister then laid down a marker of sorts: the goal of making sure Canada is among the world’s “next generation of economic powers.”

Can we do it? Can Canada prosper in a world in which older powers are struggling, and at a time when growth and investment are shifting to emerging markets?

Arvind Gupta certainly thinks so. A professor of computer science at the University of British Columbia, Dr. Gupta was one of the founders of Mitacs, a non-profit research network that creates opportunities for promising young researchers and scientists. “Canada has all the advantages to own the economic podium,” he wrote in the Vancouver Sun recently. Canada, he added, is blessed with a high standard of living, strong communities and educated citizens. We also have a culturally diverse population and natural resources that are the envy of the world.

Message froM the

Chair


So we have the potential. Unfortunately, Canada falls short in two areas that are among the keys to success in the modern global economy: innovation and productivity. Despite strong macroeconomic fundamentals, our country’s performance in both areas is weak by the standards of other advanced economies. We need to fix that, or else we risk long-term economic decline.

In particular, we need to find ways to maximize the economic spinoffs from Canada’s impressive levels of public investment in research and development. Our country is a world leader in terms of government spending on university research, yet in a 2007 comparison we ranked 14th out of 17 countries based on the number of patents per million population. To put it another way, we are clearly failing when it comes to the commercialization of knowledge.

As an organization composed of the CEOs and entrepreneurs of Canada’s leading companies, the Canadian Council of Chief Executives is keenly aware of the importance of improving Canada’s innovation record. In 2010, we helped forge a coalition of 50 leaders from business, academia and supporting organizations to develop a national innovation strategy. Later, CCCE member Tom Jenkins of Open Text Corporation was selected to lead an independent review of federal support for research and development.

Dr. Gupta, who served on the federal review panel, says there are signs that the pace of collaboration between Canadian businesses and university researchers is picking up. Since 2007, Canada has climbed from 15th to 7th place in a ranking of countries with extensive university-business collaborations. And among the 34 developed countries that comprise the Organisation for Economic Cooperation and Development (OECD), Canada is number one in the share of university research expenditures financed by business.

In this annual report, we profile more than a dozen recent and ongoing R&D initiatives involving CCCE member companies in close partnership with universities and government. They vary widely, from a project aimed at protecting sensitive whale populations to the use of advanced simulation technology to train the healthcare professionals of tomorrow.

As a country, we have our work cut out for us. Emerging economies such as China, India and Brazil are raising their own productivity levels, graduating large numbers of scientists and engineers, and improving their technological capacity.

Canadian companies and workers are more exposed than ever to global competition. But for those with the will and ambition to succeed, the opportunities in the global marketplace have also never been greater. It’s time to set our sights on the podium, identifying our strengths and working together to create the conditions that will enable Canadian players to become global champions.

Hartley T. Richardson Chair

Canadian companies and workers are more exposed than ever to global competition. But for those with the will and ambition to succeed, the opportunities in the global marketplace have also never been greater.


In the economic history of our country, few dates hold as much significance as

October 4, 1987. On that day, a quarter century ago, representatives of Canada and the United

States completed negotiations on the Canada-U.S. Free Trade Agreement (FTA), a ground-breaking and, at the time, fiercely controversial treaty that put both countries at the leading edge of global trade liberalization.

The FTA eliminated tariffs and reduced many non-tariff trade barriers, but its real significance was that it launched an evolutionary process that continues to this day. It helped to change Canadians’ mindset, reversing decades of inward-oriented economic policies. And it inspired – in many cases compelled – growing numbers of Canadian companies to look beyond our borders for sales and opportunity.

From the implementation of Canada-U.S. free trade in the late 1980s to the 1994 North American Free Trade Agreement, to current and pending trade liberalization talks with the European Union, India, Japan and the Trans-Pacific Partnership, Canadians are, to an increasing degree, reaching out to engage with the global economy.

The theme of our annual report this year is “Innovation, Productivity, Prosperity” – three words that relate directly to Canada’s international trade agenda and to the competitive challenges that Canadian employers face in the global marketplace.

Competition stimulates innovation and compels companies to become more productive, ensuring better jobs and a more prosperous future for Canadian individuals and families. Competition breeds excellence. It drives companies to invest in research and development, workplace training and new machinery and equipment. It forces them to become more responsive to customer needs.

Message froM the

PrEsidEnt and CEO


Canada overall has a lacklustre reputation for business innovation, and our country’s productivity performance is weak by the standards of other advanced industrialized economies. But businesses that are exposed to international competition, or that aspire to integrate themselves into global value chains, cannot afford to take anything for granted. To survive and grow, they must take risks, innovate and adapt quickly to the ever-changing marketplace.

Elsewhere in this report, we highlight a series of examples of innovative thinking and practice by member companies of the Canadian Council of Chief Executives, often in close partnership with leading university researchers.

Sometimes the innovation manifests itself in a new product or a productivity-enhancing business process. Sometimes it yields an environmental, health or social benefit. And sometimes it shows up in a new approach to recruiting and training the highly skilled workers that are increasingly in demand in the 21st century economy.

In 1985, a federal Royal Commission led by former Liberal finance minister Donald S. Macdonald described the prospect of reciprocal free trade between Canada and the United States as a “leap of faith.” Twenty-five years later, the leap has become a race – a race that Canadian companies run every day, in markets around the world. They, and Canada itself, are stronger and smarter because of it.

The Honourable John P. Manley, P.C., O.C. President and Chief Executive Officer

The theme of our annual report this year is “Innovation, Productivity, Prosperity” – three words that relate directly to Canada’s international trade agenda and to the competitive challenges that Canadian employers face in the global marketplace.

6 ANNUAL REPORT 2012 CANADIAN COUNCIL OF CHIEF EXECUTIVES

A different kind of liquidityThe potential long-term effects of climate change are many and varied:

from higher average temperatures and droughts to more intense rainfall and flooding. The consequences can include serious property damage,

higher insurance costs, and changes to aquatic ecosystems due to the thawing of permafrost, fluctuations in snowfall and

reduced water quality. Water conservation measures and improved resource management strategies can play

important roles in mitigating these effects. To help understand the impact of climate change and develop strategies to improve our ability to adapt to it, Rio Tinto Alcan has partnered with Ouranos, a joint initiative of the Quebec government, Hydro-Québec, Environment Canada, the Université du Québec à Montréal, Université Laval, McGill University, and INRS University. Named after the

mythological Greek god of the sky, the non-profit research consortium is working to further research on

climate change in the province, and studying the future impact of these changes on water management. Rio Tinto

Alcan has invested $500,000 in the partnership and was the organization’s first private sector member. The company hopes

the research will assist its water resource management operations and improve hydrological forecasting.

Canada is a world leader in the share of university research

financed by the private sector. across the country, the pace of

university-business collaboration – including joint r&d projects, industrial

internships and cross-sector research networks – is on the rise. some examples

of innovative research partnerships involving CCCE member companies:

taking thE lEad

7ANNUAL REPORT 2012 CANADIAN COUNCIL OF CHIEF EXECUTIVES

engineering successCanada is facing a future of dramatic demographic changes, shortages of skilled labour and intense competition from emerging economies. A key priority for the country is to equip younger Canadians with the skills and knowledge they need to succeed in a technology-based and innovation-dependent economy. Linamar Corporation, a leading supplier to the global automotive and mobile industrial equipment markets, recognizes the value of investing in, developing and motivating today’s students. In 2011, Linamar donated $1 million to the University of Guelph’s School of Engineering, enough to fund 10 entrance scholarships a year in perpetuity, each worth $2,500. Linda Hasenfratz, Chief Executive Officer of Linamar, says that the company’s ability to compete around the world depends on product and process innovation, and “the key to doing so successfully is plenty of strong engineers with a solid grounding in practical and theoretical knowledge.” In addition to nurturing tomorrow’s highly skilled engineers, the scholarship program enhances the university’s ability to attract top students who excel in design and innovation. Each year, five scholarships go to students arriving at the university directly from high school and five to students who are transferring from college-level and international technology programs.

A whAle of A tAleThe North Atlantic right whale is among the world’s rarest and most endangered whale species. For centuries, they were hunted for their oil, meat and baleen (whalebone), to the point where there are now believed to be fewer than 500 in existence. The Bay of Fundy is a natural habitat for the North American right whale due to the area’s strong tidal currents, which concentrate large quantities of the tiny crustaceans on which the whales feed. Until a decade ago, however, the whale population in


So

urc

e: U

niv

ers

ity o

f G

ue

lph

Source: Irving Oil Limited

the Bay of Fundy was in sharp decline as a result of collisions with large ships. Determined to lessen the impact on whales and reduce the likelihood of ship strikes, managers at Irving Oil Limited partnered with the New England Aquarium and Dalhousie University on a research project that recommended changes to the shipping lanes in the area, a plan that was adopted by the International Marine Organization. The relocation of the shipping lanes in 2003 – the first time shipping lanes had ever been altered to protect an endangered species – reduced the danger of ship collisions with whales by 90 percent, and since then there have been no known ship strikes in the Bay of Fundy. Irving Oil’s commitment to science-based conservation efforts continues through its ongoing involvement in, and financial support for, whale research, conservation and education efforts.

it’s good for youLocated on the campus of the University of Manitoba, the Richardson Centre for Functional Foods and Nutraceuticals is at the forefront of research into the effects of diet on health and disease prevention. The centre has two primary roles: to investigate and develop foods with demonstrable health benefits beyond providing energy, vitamins and minerals; and to promote the development of an economically viable functional food and nutraceutical industry in western Canada based on crops important to the Prairie region, including cereals, pulses, oilseeds, berries and cherries and native plants. Winnipeg-based James Richardson & Sons, Ltd., Canada’s largest privately owned agribusiness, is a major financial supporter of the centre. Since its inception in 2006, the Richardson Centre for Functional Foods and Nutraceuticals has

performed a wide variety of research projects on behalf of the agri-food, natural health product and pharmaceutical

industries. For example, researchers have looked at ways to lower cholesterol in humans using naturally

occurring products such as whole grains, dairy and oils. Other projects have focused on the health

benefits of consuming canola, flax oils, pulses and buckwheat, improving heart health with herbs and spices, and improving levels of blood lipids, such as fatty acids, with plant extracts and high-fiber barley foods. One current study is aimed at determining whether expensive protein powders are any better than chocolate milk as a post-workout supplement to hasten muscle recovery and build strength.



AccelerAted outcomesNuclear medicine involves the use of tiny amounts of radioactive material to diagnose and treat a wide variety of diseases, including cancer and arthritis. At TRIUMF, one of the world’s leading subatomic physics laboratories, researchers from Nordion Inc. are developing new ways to enhance the health of patients around the world. Owned and operated by a consortium of 16 Canadian universities, TRIUMF operates the world’s largest cyclotron, a special type of particle accelerator that is used to conduct physics research. Nordion has had a 30-year commercial relationship with Vancouver-based TRIUMF, resulting in a number of pioneering developments in molecular imaging technology. Through TRIUMF, Nordion has also forged new partnerships with biopharmaceutical companies for the manufacture of products used in diagnosing cardiac disease and neurological disorders. Nordion and TRIUMF are planning future research and development activities in the areas of radiochemistry and biology that will explore new approaches for imaging, treatment and diagnosis of disease.

the right movesMore than 100,000 Canadians live with Parkinson’s disease, a chronic degenerative disease of the central nervous system that can cause shaking, difficulty of movement and dementia. Although there is no known cure for Parkinson’s, exercise has been found to be effective in mitigating the symptoms. Sun Life Financial Inc. has committed $250,000 to support research at Wilfrid Laurier University into Parkinson’s disease, as well as other brain-related movement disorders such as Huntington’s disease and Tourette’s syndrome. The Sun Life Financial Movement Disorders Research & Rehabilitation Centre focuses on finding ways to slow the progression of Parkinson’s disease through the development of exercise regimes that are proven to benefit a patient’s balance, gait and coordination. With Sun Life’s support, the centre has built a reputation as the top Parkinson’s research facility in Canada.


So

urc

e: N

ord

ion

In

c.

Source: Sun Life Financial Inc.

driving reseArchLaunched in 1996, the Windsor, Ontario-based Automotive

Research and Development Centre (ARDC) began as a $30 million joint initiative of Chrysler Canada Inc. and the

University of Windsor. The first partnership of its kind in Canada, it has since attracted more than $600 million in investment. The goal of the centre is not only to produce smarter, more durable and safer cars, but to train new generations of Canadian engineers capable of leading-edge research and development in the global automotive industry. The 200,000-square-foot facility, equipped with six road-test simulators, enables

Chrysler employees to work side-by-side with a wide range of researchers and students at all levels from the

university. Priority research areas include alternative fuels and fuel efficiency, automotive lighting, recycling

and corrosion resistance.

A seA chAngeScientists have known since the 1930s that omega-3 fatty acids are essential for normal human growth, but it was only in the 1990s that public awareness of its health benefits increased dramatically. A Canadian entrepreneur, John Risley, played a significant role in the commercialization of omega-3 supplements. Mr. Risley, the founder, president and chief executive officer of Clearwater Fine Foods Inc., began studying the possible health advantages of fish oil after seeing scientific evidence supporting its benefits for the heart and brain. In 1997 he launched Ocean Nutrition Canada. Working closely with experts, the company developed a breakthrough technology that transformed fish oil into a tasteless, odorless powder finer than flour – a supplement that could be added to a wide range of food products, from beverages to bread. Today, Ocean Nutrition is the world’s leading supplier of omega-3 ingredients to the dietary supplement and food manufacturing sectors – a multi-billion-dollar market, fueled by increasing media attention,


Source: Ocean Nutrition Canada Ltd.

Source: Chrysler Group LLC


consumer awareness and proven health benefits. In May 2012, Ocean Nutrition was sold to a Dutch-based company for $540 million – compelling evidence of innovation’s potential to create value.

on trAckAs cities around the world become increasingly congested, the need for smarter and more durable urban transportation solutions is growing more acute. Bombardier Inc., in partnership with Queen’s University, is testing a new generation of reinforced concrete that could be used to build stronger, longer-lasting transportation infrastructure. The company is working with a team of civil engineering students to build and evaluate a 1.5-kilometre-long monorail train track just outside Kingston, Ontario. Traditional reinforced concrete is built with steel rods, which are heavy and prone to rust, causing the concrete to crack and crumble. The new monorail test track is reinforced with fibreglass bars and rods, which weigh one-third as much and last much longer. “It’s a chance to test our technologies and designs in collaboration with a multinational company,” says Dr. Amir Fam, professor of structural engineering and Canada Research Chair in Innovative and Retrofitted Structures. Queen’s researchers have been doing pioneering work in the area of fibre-reinforced polymers for more than 17 years. With Bombardier’s involvement, the technology could soon be ready for real-world application in urban transportation systems.

synchronicityCanada is among the world’s leading producers of nickel, and Vale Canada Limited is the country’s foremost producer of the metal. Nickel is a key ingredient in stainless steel as well as batteries and various other industrial and consumer products – but the toxicity of different chemical forms of nickel can vary significantly. For nickel producers, understanding the chemical differences that make some nickel compounds toxic and others harmless is the key to satisfying stringent regulatory requirements and validating safety standards. To protect its employees and the environment, Vale Canada works closely with scientists at Canadian Light Source (CLS), Canada’s national synchrotron research facility. Located at the University of Saskatchewan, the synchrotron is one of the largest science projects in Canadian history. Using radio frequency waves and powerful magnets to accelerate

Source: Bombardier Inc. and Queen’s University

electrons close to the speed of light, the synchrotron enables scientists to study the microstructure and chemical properties of materials down to the atomic level. In Vale’s case, that means gaining a detailed understanding of the chemical nature of

nickel particulates found in mines and processing facilities. The CLS synchrotron is a unique and

valuable tool for companies in a wide range of industries, from biotechnology to manufacturing. Among

other applications, Canadian companies have used it to develop more effective paints and motor oils, design new

drugs, create safer medical implants and build more powerful computer chips.

neonAtAl nurturingEight per cent of babies in Canada are born prematurely, putting them at increased risk of respiratory illness, infection, developmental problems and even death. Most require constant monitoring to detect any deterioration in their vital signs or other subtle warnings of complications or disease. To help doctors make better, faster decisions regarding the care of premature infants, a team of researchers worked closely with IBM Canada Ltd. on a breakthrough software project using advanced stream computing. The result was Project Artemis, a highly flexible, real-time monitoring system that enables healthcare professionals to detect certain life-threatening conditions such as infection up to 24 hours faster than is possible with traditional approaches to neonatal monitoring. The IBM software analyzes vast quantities of biomedical data collected from critically ill babies at up to 1,000 readings per second, as well as environmental data gathered from advanced sensors and more conventional bedside monitors.

Source: Canadian Light Source Inc.


operAtion simulAte Based in Montreal, CAE Inc. is recognized worldwide as a developer of flight simulators that are used to train commercial and military airline pilots. But by leveraging its knowledge of advanced simulation technology, the company is also helping to train the next generation of healthcare professionals. In 2009, CAE partnered with the Université de Montréal to create one of Canada’s largest healthcare simulation centres. The centre offers training in a risk-free environment to more than 1,000 medical students each month. It also functions as a joint research and development site, enabling CAE Healthcare and the university’s medical faculty to work together to design and test new educational tools – including life-like robotic mannequins – that improve and enhance the safety and efficiency of patient care. The centre is equipped with 12 rooms that can be used to simulate different environments: a hospital, an ambulatory environment, a private medical practice, an external clinic, an emergency room and so on. The centre stresses the importance of teamwork, communication, error avoidance and error mitigation in improving patient outcomes. This year the centre was accredited by the Royal College of Physicians and Surgeons, recognizing that the facility effectively improves the quality of the educational experience offered to its students.

Apps everywhereIn today’s highly interconnected world, service availability and reliability are critical. In fields such as mobile computing, telephony and banking, interruptions in service can trigger financial losses and customer dissatisfaction. The impact can be even more serious in safety-critical situations, such as traffic control systems. To improve the reliability and performance of mobile communications, Ericsson Canada Inc. and the Natural Sciences and Engineering Research Council (NSERC) partnered with researchers at Concordia University on a project known as MAGIC (Modeling and Automatic Generation of Information and upgrade Campaigns for Service Availability). The project focussed on ways of improving and standardizing so-called “middleware” – the software layer that lies between a mobile device’s operating system and its applications software. By standardizing the middleware, the researchers have made it possible for applications to run reliably on a wider variety of mobile devices from different manufacturers. At the same time, resesarchers helped Ericsson figure out how best to upgrade software applications and repair glitches without interrupting the services they are delivering to the end-user.


Source: Ericsson Canada Inc.

So

urc

e: C

AE

In

c.


from field to fuelCanada’s federal and provincial governments have mandated the use of ethanol in gasoline to lessen the country’s reliance on fossil fuels, reduce pollution and promote economic growth in rural areas. Husky Energy Inc. is a leading producer of starch-based ethanol and has invested heavily in two large-scale ethanol plants. Husky has committed $1.625 million over five years to the University of Manitoba to fund biofuels research, plus another $1 million to support longer-term research beyond the initial five-year period. The biofuels research program, led by plant scientist Dr. Anita Brûlé-Babel, focuses on developing high-yield, disease-resistant winter wheat varieties, boosting yields, improving the ethanol production process and making better use of ethanol by-products, such as dried distillers grain. The knowledge and experience gained from these studies will contribute to the development of long-term strategies for improved grain yields for future food, feed and fuel purposes.

So

urc

e: H

usk

y E

ne

rgy I

nc.

the energy to innovAteCanada’s oil sands contribute about 6.5 per cent of the country’s overall greenhouse gas (GHG) emissions, or about 0.1 per cent of the world’s total emissions. GHG emissions per barrel of oil from the oil sands have fallen by roughly a third since 1990, but the industry knows it needs to go further to mitigate the environmental impacts of energy production. As a result, 12 of Canada’s leading energy producers have taken the unprecedented step of pooling their environmental research efforts. Canadian Natural Resources Limited, Cenovus Energy Inc., Imperial Oil, Nexen Inc., Shell Canada Energy, Suncor Energy, Teck Resources Limited, and several other producers, have joined forces to create Canada’s Oil Sands Innovation Alliance (COSIA). Bringing together researchers from industry, universities and government, the alliance is intended to improve collaboration and promote innovation with the goal of overcoming the most pressing oil sands environmental challenges.

So

urc

e: C

en

ovu

s E

ne

rgy I

nc.


16 ANNUAL REPORT 2012 CANADIAN COUNCIL OF CHIEF EXECUTIVES

YEar in rEviEw the Canadian Council of Chief

Executives enables CEOs and leading entrepreneurs from every

region and every major industry to devote time and energy to

addressing key issues that affect the country as a whole. Our primary areas

of focus include: fiscal policy; innovation; energy and the environment; north

american economic cooperation; and international trade and investment.

Examples of our work over the past year:

fiscAl policyA responsible fiscal framework is a Canadian competitive advantage.

At a time when economic uncertainty continues to cast a long shadow over the global economy, the CCCE believes it is

essential that Canadian governments strive to balance their budgets and constrain the growth in public spending. The

federal government has made significant progress toward that goal. From a peak of $42.6 billion in 2009-2010, the

federal deficit declined to an estimated $24.9 billion at the end of fiscal year 2011-12. Federal program spending continues to grow, but at a modest pace, and the government appears on track to return to surplus by 2015-2016.

As a percentage of Canada’s overall deficit challenge, provincial budgets are a much greater concern than in the mid-1990s, the last time the country faced significant budgetary shortfalls. In 2012-2013,

Canada’s provincial governments will incur an estimated combined deficit of $22 billion. British

Columbia, Alberta, Quebec and Nova Scotia are expected to balance their budgets in 2013-2014. At the other end

of the spectrum, Ontario is wrestling with a $15.3 billion deficit and does not expect to achieve balance until 2017-2018.

Progress in reducing deficits has stalled in many provinces, highlighting the urgent need for governments to find more efficient

ways of delivering services. Of particular concern are rising health care costs, which account for roughly half of provincial budgets.


The CCCE agrees with the recent recommendation of the House of Commons Standing Committee on Finance for a comprehensive review of Canada’s tax system. The Organisation for Economic Cooperation and Development, in its 2012 Economic Survey of Canada, noted that Canada has made significant progress in reducing the statutory corporate income tax rate. Even so, the complexity of the tax system imposes a significant administrative burden on Canadian workers and business owners. Comprehensive tax reform that focuses on fostering investment and savings, and that reduces the disparity in treatment between small and large firms, would enhance Canada’s medium-term economic growth prospects while encouraging smaller companies to expand, invest and enter new markets.

During the past year, CCCE members have exchanged views on Canada’s evolving economic conditions with a range of senior federal and provincial decision-makers, including Bank of Canada Governor Mark Carney (Winnipeg, October 2011) and Finance Minister Jim Flaherty (Toronto, January 2012). Governor Carney also participated in a special teleconference for CCCE members after the release of the Bank’s July 2012 Monetary Policy Report.

energy And the environmentEnergy production and research into advanced energy technologies are important drivers of economic growth. The CCCE believes that Canada’s political leaders should agree on a broad strategy that would maximize the potential of Canada’s diverse energy resources. In a submission to the premiers and territorial leaders prior to their July 2012 meeting, we outlined 10 key elements of such a strategy, including efforts to diversify Canada’s energy export markets, streamline regulatory processes, ensure consistency in climate policies, and address the labour market needs of the energy sector. The Council also called for stronger partnerships with Aboriginal peoples on energy projects. “Addressing the role of Aboriginal communities in energy and resource development begins with early engagement and a true spirit of building stronger relationships,” the CCCE submission said.

An earlier CCCE paper, Energy-Wise Canada: Building a Culture of Energy Conservation, emphasized the importance to business and consumers of improved energy efficiency. We urged governments not to shield

FEDERAL DEFICIT

Source: Finance Canada. From 2011 on, data are estimates or projections

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

-50

-40

-30

-20

-10

0

10

-42.6

-33.4

-24.9-21.1

-10.2

-1.3

2010-11 2012-13 2014-15

% o

f GD

P

Defi

cit/

surp

lus (

$bill

ions

)

2016-17

3.47.8

Source: Canadian Natural Resources Limited


Canadians from higher energy prices, which play an important role in motivating individuals and companies to change their energy consumption habits and investment decisions.

In April 2012, some 65 CCCE members toured Canadian Natural Resources’ Horizon oil sands facility and Cenovus Energy’s Christina Lake project, both in northeastern Alberta. The trip enabled CEOs from across Canada to learn about the scale of investments and some of the innovations that are improving environmental performance while generating significant economic spinoffs for the rest of the economy.

innovAtion The federal government spends $5 billion a year to support private sector research, but Canada still lags its international peers in business innovation. In the fall of 2011, a federal independent panel on research and development – led by CCCE member Tom Jenkins, Executive Chairman and Chief

Strategy Officer of Open Text Corporation – put forward a series of recommendations that would simplify federal R&D incentive programs, reduce compliance costs, promote commercialization of new technologies, and target assistance more directly at innovative companies.

A number of the panel’s key recommendations were reflected in the government’s 2012 budget. However, the

government chose a different approach to amending the $3.5 billion-a-year Scientific Research and

Experimental Development (SR&ED) tax credit program. The CCCE is concerned about two

changes in particular: the government’s decision to reduce the value of the SR&ED credit from 20 to 15 per cent for medium and large firms, and the elimination of claims for capital costs associated with research projects. “Some of the suggested changes may backfire by reducing the incentives for large enterprises to conduct R&D in Canada,” we said in a submission to the House of Commons Standing Committee on Finance.

Canada is the world’s:

• 2nd largest producer of uranium

• 3rd largest producer of hydro-electricity

• 3rd largest producer of natural gas

• 6th largest producer of oil

“Global demand for energy is expected to rise by 40% by 2035 as economies in both developed and emerging countries continue to grow and the standard of living improves in the developing world.”

- International Energy Agency

north AmericAFor years, Canada and the United States have wrestled with the need to improve the management of our shared border. In December 2011, Prime Minister Stephen Harper and President Barack Obama announced that the two countries had agreed to implement two action plans designed to speed up legitimate trade and travel, improve security, and align regulatory approaches between the two countries. The CCCE welcomed the announcement as “a significant and much-needed step forward in Canada-U.S. cooperation.” Of the 36 border-related recommendations put forward by the CCCE in an earlier submission to the Government of Canada, 27 were incorporated in the bilateral action plans.

For manufacturers and exporters on both sides of the border, a key priority is the construction of a second bridge connecting Windsor, Ontario, and Detroit, Michigan. Fully a quarter of all Canada-U.S. trade enters or leaves our country through the heavily congested Detroit-Windsor corridor, and commercial traffic at that crossing is expected to triple over the next three decades. In June 2012, Prime Minister Harper and Michigan Governor Rick Snyder signed an agreement to expedite construction of a new, publicly owned bridge, the Detroit River International Crossing. Under the agreement, Canada will be responsible for building, financing and operating the new bridge, likely with private sector involvement. The CCCE called the announcement “highly encouraging,” adding it would “help companies that rely on just-in-time production to keep costs down and improve their competitiveness”.

BUSINESS INVESTMENT IN CANADA (BILLIONS)

Source: Bank of Canada

Highlights of the Canada-U.S. border plan:

• Upgrades to key border crossings

• Common approach to screening cargo from offshore

• Expedited temporary entry for business visitors

• Expansion of the NEXUS program for trusted travellers

• Streamlined customs-reporting requirements for importers

• Common approaches to food and motor vehicle safety standards


050

100150200250300350

$233.1$265.1 $288.3 $360.3

2009 2010 2011 2012 – intentions


internAtionAlFacing the prospect of slow recoveries in the

United States and Europe, Canadian exporters are increasingly looking to emerging economies for growth and opportunity. In 2011, the CCCE and the Canada China Business Council published an influential study by economist Wendy Dobson that called on Canada to move beyond “ad hoc arrangements” by developing both closer ties with Asia and a focused strategy based

on ambitious targets for trade and investment. The report, “Canada, China and

Rising Asia: A Strategic Proposal,” helped set the stage for the launch of a significant new

CCCE initiative that is examining Asia’s growth, the rapid expansion of the global middle class and

the impact on Canada’s economic prospects in the 21st century. In 2012, to encourage debate on what Canada

needs to do to succeed in a rebalanced global economy, we published eight papers and essays examining various aspects of the

Canada-Asia relationship. We also announced our intention to host “Canada in the Pacific Century,” a major conference in Ottawa for 200 business leaders, senior government officials and representatives of aboriginal communities, labour and other sectors.

As a longstanding proponent of an ambitious Canadian trade strategy, the CCCE looks forward to the anticipated completion of economic

partnership negotiations with the European Union in late 2012. We also continue to offer advice and support to

the federal government as Canada seeks to forge closer ties with India, Japan, Brazil, Australia and

other markets that hold promise for Canadian companies. In June 2012, the CCCE strongly welcomed Canada’s entry into the Trans-Pacific Partnership (TPP), a multilateral set of negotiations that has the potential to spur economic growth around the Pacific Rim. Speaking on behalf of Canada’s business leaders, Mr. Manley expressed the hope that the TPP would lead to “significant reforms in areas such as intellectual property protection, regulatory cooperation, rules of origin and non-tariff barriers, agricultural trade, and investment and services liberalization.”

WHERE THE WORLD’S MIDDLE CLASS CONSUMERS WILL LIVE IN 2030

Source: OECD

Central andSouth America

EuropeNorth America

Africa andMiddle East

Asia Pacific 7% 7%14%

66%6%

Source: Office of the Prime Minister

of Canada


events & Publications

event highlightsCCCE delegation to JapanTokyo – September 25-26, 2011

Autumn Members’ MeetingWinnipeg, MB – October 3-4, 2011

“The way forward: Canada’s decade of opportunity” Remarks to the Canadian Business Leadership Forum Toronto, ON – October 19, 2011

CCCE delegation to ChinaBeijing and Chongqing - November 19-23, 2011

New Year Members’ MeetingToronto, ON – January 16-17, 2012

World Economic Forum Annual Meetingdavos-Klosters, Switzerland – January 25-29, 2012

Aspen Institute dialogue on Canada’s economic and fiscal renaissanceWashington, d.C. – March 28, 2012

CEO Summit of the AmericasCartagena de indias, Colombia – april 13-14, 2012

Members’ tour of oil sands facilities fort McMurray and Christina lake, aB – april 30, 2012

Spring Members’ MeetingCalgary, aB – april 30- May 1, 2012

Remarks to the Petroleum Club Calgary, aB – May 16, 2012

Remarks to the Canadian American Business CouncilWashington, d.C. – June 7, 2012

Remarks to the New England Business CouncilBoston, Ma – June 21, 2012

selected publicAtions A Canadian national economic strategy for AsiaBy Dominic Barton, Bruno Roy and Bruce Simpsonaugust 2012

L’essor de la Chine et les implications pour le QuebecBy Martin Cauchon, Joseph P. Caron, and Michael G. Woodsaugust 2012

Strengthening education and research connectivity between Canada and Asia By Stephen J. Toopeaugust 2012

Competing in the 21st century skills raceBy Graham Orpwood, Bonnie Schmidt and Hu JunJuly 2012

Framing an energy strategy for Canada: Submission to the Council of the FederationJuly 2012

Golden opportunities and surmountable challenges: Prospects for Canadian agriculture in AsiaBy Michael Giffordapril 2012

A northern tiger? Canada’s economic and fiscal renaissance and its implications for the United StatesBy Jeremy Leonard March 2012

Chinese foreign direct investment in Canada: Threat or opportunity?By Theodore H. MoranMarch 2012

Ambiguity and illusion in China’s economic transformation: Issues for Canadian policy makers and business leadersBy Michael Hartfebruary 2012

Corporate taxes, jobs and investment: the real story(Article in iPolitics)January 25, 2012

Energy-wise Canada: Building a culture of energy conservationdecember 2011

Geography is destiny: a good week for Canada-US relations (Article in iPolitics)december 9, 2011

Canada, China and rising Asia: A strategic proposalBy Wendy DobsonOctober 2011

Intellectual property: A new kind of arms race, with patents as ammo(Article in The Globe and Mail)October 5, 2011

Source: Canada China Business Council


board of directors

m. elyse Allan

President and Chief Executive Officer, GE Canada

pierre beaudoin

President and Chief Executive Officer, Bombardier Inc.

John m. cassaday

President and Chief Executive Officer, Corus Entertainment Inc.

paul desmarais, Jr. (vice chair)

Chairman and Co-Chief Executive Officer, Power Corporation of Canada

william A. downe

President and Chief Executive Officer, BMO Financial Group

n. murray edwards

President, Edco Financial Holdings Ltd.

darren entwistle

President and Chief Executive Officer, TELUS

J. bruce flatt

Chief Executive Officer, Brookfield Asset Management Inc.

linda s. hasenfratz

Chief Executive Officer, Linamar Corporation

paul J. hill

Chairman, President and Chief Executive Officer, Harvard Developments Inc. – A Hill Company

tom Jenkins

Executive Chairman and Chief Strategy Officer, Open Text Corporation

donald r. lindsay

President and Chief Executive Officer, Teck Resources Limited


Jon e. love

Managing Partner, KingSett Capital Inc.

the honourable John p. manley, p.c., o.c.

President and Chief Executive Officer, Canadian Council of Chief Executives

michael h. mccain

President and Chief Executive Officer, Maple Leaf Foods Inc.

lorraine mitchelmore

President and Canada Country Chair, Shell Canada Limited

claude mongeau

President and Chief Executive Officer, CN

gordon m. nixon (past chair)

President and Chief Executive Officer, Royal Bank of Canada

hartley t. richardson (chair)

President and Chief Executive Officer, James Richardson & Sons, Limited

John c. risley

President, Clearwater Fine Foods Inc.

Juergen schachler

President and Chief Executive Officer, ArcelorMittal Dofasco Inc.

nancy c. southern

President and Chief Executive Officer, ATCO Group

louis o. vachon

President and Chief Executive Officer, National Bank of Canada

michael m. wilson

President and Chief Executive Officer, Agrium Inc.


mark AboudPresident and Managing Director SAP Canada Inc.

david Aisenstat 2Chairman, President and Chief Executive Officer Keg Restaurants Ltd.

m. elyse Allan 1President and Chief Executive Officer GE Canada

mike AsharPresident Irving Oil Limited

richard bakerGovernor Hudson’s Bay Company

katherine bardswickPresident and Chief Executive Officer The Co-operators Group Limited

w. geoffrey beattiePresident The Woodbridge Company Limited

laurent beaudoin 2Chairman Bombardier Inc.

pierre beaudoin 1, 2President and Chief Executive Officer Bombardier Inc.

John m. beckChairman and Chief Executive Officer Aecon Group Inc.

reid biglandChairman, President and Chief Executive Officer Chrysler Canada Inc.

pierre blouinChief Executive Officer MTS Allstream Inc.

ian A. bourneVice Chairman and Interim Chief Executive Officer SNC-Lavalin Group Inc.

charles brindamourChief Executive Officer Intact Financial Corporation

Jack broodoPresident Dow Chemical Canada ULC

bill buckleyPresident and Chief Executive Officer ShawCor Ltd.

John m. cassaday 1President and Chief Executive Officer Corus Entertainment Inc.

yvon charestPresident and Chief Executive Officer Industrial Alliance Insurance and Financial Services Inc.

neil chrystalPresident and Chief Executive Officer Polygon Homes Ltd.

w. edmund clarkPresident and Chief Executive Officer TD Bank Group

Jack l. cockwell 2Group Chairman Brookfield Asset Management Inc.

dean connorPresident and Chief Executive Officer Sun Life Financial Inc.

roy cook 3Chair Canadian Manufacturers & Exporters

george A. copePresident and Chief Executive Officer BCE Inc. and Bell Canada

Jacynthe côtéChief Executive Rio Tinto Alcan

marcel r. coutuPresident and Chief Executive Officer Canadian Oil Sands Limited

dianne craigPresident and Chief Executive Officer Ford Motor Company of Canada, Limited

robert s. crosbie 2Chairman Crosbie Group Limited

david m. culverPast Chair Canadian Council of Chief Executives

tim cuttPresident and Chief Executive Officer BHP Billiton Canada Inc.

thomas d’AquinoDistinguished Lifetime Member and Former Chief Executive Canadian Council of Chief Executives

Jim w. davidsonChairman and Chief Executive Officer FirstEnergy Capital Corp.

marc de la bruyère 2Chairman Maclab Enterprises

MeMbershiPas of august 2012

1. Board of Directors

2. Entrepreneurs’ Circle

3. Associate Member


Arthur A. defehr 2Chief Executive Officer Palliser Furniture

michael denhamPresident and Managing Director, Canada Accenture Inc.

André desmarais 2President and Co-Chief Executive Officer Power Corporation of Canada

paul desmarais, Jr. 1, 2Chairman and Co-Chief Executive Officer Power Corporation of Canada

paul g. douglasPresident and Chief Executive Officer PCL Constructors Inc.

william A. downe 1President and Chief Executive Officer BMO Financial Group

william J. doylePresident and Chief Executive Officer PotashCorp

rupert duchesneGroup Chief Executive Aimia Inc.

n. murray edwards 1, 2President Edco Financial Holdings Ltd.

darren entwistle 1President and Chief Executive Officer TELUS

randall k. eresmanPresident and Chief Executive Officer Encana Corporation

Jon fairestPresident and Chief Executive Officer Sanofi-aventis Canada Inc.

dawn farrellPresident and Chief Executive Officer TransAlta Corporation

brian fergusonPresident & Chief Executive Officer Cenovus Energy Inc.

kenneth e. field 2Chairman and Chief Executive Officer GreenField Ethanol Inc.

J. bruce flatt 1Chief Executive Officer Brookfield Asset Management Inc.

Jay forbesPresident and Chief Executive Officer Teranet Inc.

peter galanisPresident and Chief Executive Officer Hewlett-Packard (Canada) Co.

richard l. georgeDistinguished Lifetime Member Canadian Council of Chief Executives

Asim ghoshPresident and Chief Executive Officer Husky Energy Inc.

John w. gibson, Jr.President and Chief Executive Officer Tervita Corporation

peter e. gilgan 2Founder and Chief Executive Officer Mattamy Homes Limited

russ girlingPresident and Chief Executive Officer TransCanada Corporation

blake c. goldring 2Chairman and Chief Executive Officer AGF Management Limited

J. lindsay gordonPresident and Chief Executive Officer HSBC Bank Canada

george f. J. gosbee 2Chairman, President and Chief Executive Officer AltaCorp Capital Inc.

Anthony r. grahamPresident Wittington Investments, Limited

ian greenbergPresident and Chief Executive Officer Astral Media Inc.

Andy grossChief Executive Officer Giant Tiger Stores Limited

charles guayPresident and Chief Executive Officer The Standard Life Assurance Company of Canada

donald A. guloienPresident and Chief Executive Officer Manulife Financial Corporation

robert hardtPresident and Chief Executive Officer Siemens Canada Limited

hunter harrisonPresident and Chief Executive Officer Canadian Pacific Railway

Source: Stone Creek Resorts Inc. Source: BCE Inc. and Bell Canada


linda s. hasenfratz 1, 2Chief Executive Officer Linamar Corporation

duncan hawthornePresident and Chief Executive Officer Bruce Power

John helouPresident Pfizer Canada Inc.

mark hendersonPresident and Chief Executive Officer Ericsson Canada Inc.

trent henryChairman and Chief Executive Officer Ernst & Young LLP

les herrPresident and Chief Executive Officer Empire Life Insurance Company

paul J. hill 1, 2Chairman, President and Chief Executive Officer Harvard Developments Inc. - A Hill Company

Alberto ipertiManaging Director, Canada Tenaris

duncan n. r. Jackman 2Chairman, President and Chief Executive Officer E-L Financial Corporation Limited

tom Jenkins 1, 2Executive Chairman and Chief Strategy Officer Open Text Corporation

daryl A. katz 2Chairman and Chief Executive Officer The Katz Group of Companies

nitin kawalePresident Cisco Systems Canada, Co.

don kaynePresident and Chief Executive Officer Canfor Corporation

edward s. kennedyPresident and Chief Executive Officer The North West Company Inc.

gordon J. kerrPresident and Chief Executive Officer Enerplus Corporation

hassan khosrowshahi 2Chairman Persis Holdings Ltd.

James s. kinnear 2President and Chief Executive Officer Kinnear Financial Limited

thomas A. kloetChief Executive Officer TMX Group Inc.

tetsuo komuroPresident and Chief Executive Officer Mitsui & Co. (Canada) Ltd.

Jean-yves leblanc 3Chairman of the Board Conseil du patronat du Québec

Jeff lehrmannPresident Chevron Canada Limited

bill lenniePresident The Home Depot of Canada Inc.

monique f. lerouxChair of the Board, President and Chief Executive Officer Desjardins Group

donald r. lindsay 1President and Chief Executive Officer Teck Resources Limited

paul J. lirettePresident and Chief Executive Officer GlaxoSmithKline Inc.

lisa s. lissonPresident Federal Express Canada Ltd.

christine lithgowPresident and Chief Executive Officer Aon Reed Stenhouse Inc.

d. Allen loneyPresident and Chief Executive Officer The Great-West Life Assurance Company

maxwell longPresident Microsoft Canada Inc.

brandt c. louie 2Chairman, President and Chief Executive Officer H.Y. Louie Co. Limited

Jon e. love 1, 2Managing Partner KingSett Capital Inc.

John m. lutzPresident IBM Canada Ltd.

MEMBERSHIP Source: PCL Constructors Inc.


paul maddenPresident and General Manager 3M Canada Company

the honourable John p. manley 1President and Chief Executive Officer Canadian Council of Chief Executives

ronald n. mannix 2Chairman Coril Holdings Ltd.

John A. manzoniPresident and Chief Executive Officer Talisman Energy Inc.

bruce h. marchChairman, President and Chief Executive Officer Imperial Oil Limited

russel marcouxPresident and Chief Executive Officer Yanke Group of Companies

ron mathison 2President and Chief Executive Officer Matco Investments Ltd.

michael h. mccain 1, 2President and Chief Executive Officer Maple Leaf Foods Inc.

gerald t. mccaugheyPresident and Chief Executive Officer CIBC

calvin mcdonaldPresident and Chief Executive Officer Sears Canada Inc.

bill mcfarlandChief Executive Officer and Senior Partner PricewaterhouseCoopers LLP

lorraine mitchelmore 1President and Canada Country Chair Shell Canada Limited

nadir mohamedPresident and Chief Executive Officer Rogers Communications Inc.

claude mongeau 1President and Chief Executive Officer CN

kevin A. neveuPresident and Chief Executive Officer Precision Drilling Corporation

gordon m. nixon 1President and Chief Executive Officer Royal Bank of Canada

masaru odaPresident and Chief Executive Officer Mitsubishi Canada Ltd.

kevin ogawaPresident and Chief Executive Officer Canon Canada Inc.

r. Jeffrey orrPresident and Chief Executive Officer Power Financial Corporation

michael J. oxleyPresident E.I. du Pont Canada Company

marc parentPresident and Chief Executive Officer CAE Inc.

laurence g. pathy 2Chairman Fednav Limited

John e. peller 2President and Chief Executive Officer Andrew Peller Limited

len pennerPresident Cargill Limited

domenic pillaPresident and Chief Executive Officer Shoppers Drug Mart Corporation

peter poppingaChief Executive Officer Vale Canada Limited

randy powellPresident and Chief Executive Officer Rocky Mountaineer

mike prattPresident and Chief Operating Officer Best Buy Canada Ltd.

kevin reinhartInterim President and Chief Executive Officer Nexen Inc.

paul reynoldsPresident and Chief Executive Officer Canaccord Financial Ltd.

hartley t. richardson 1, 2President and Chief Executive Officer James Richardson & Sons, Limited

John c. risley 1, 2President Clearwater Fine Foods Inc.

michael e. roachPresident and Chief Executive Officer CGI Group Inc.

Source: PotashCorpSource: Husky Energy Inc.


harold A. roozen 2Chairman and Chief Executive Officer CCI Thermal Technologies Inc.

roger rossiPresident and Chief Executive Officer Reliance Comfort Limited Partnership

calin rovinescuPresident and Chief Executive Officer Air Canada

lino A. saputo, Jr.Chief Executive Officer and Vice Chairman of the Board Saputo Inc.

Juergen schachler 1President and Chief Executive Officer ArcelorMittal Dofasco Inc.

mayo schmidtPresident and Chief Executive Officer Viterra Inc.

larry w. shelleyPresident and Chief Executive Officer Coril Holdings Ltd.

ian smithChief Executive Officer Clearwater Seafoods Limited Partnership

stephen smithChairman, President and Co-founder First National Financial LP

Jamie c. sokalskyPresident and Chief Executive Officer Barrick Gold Corporation

nancy c. southern 1, 2President and Chief Executive Officer ATCO Group

ronald n. stern 2President and Chief Executive Officer Alberta Newsprint Company

don streuberPresident and Chief Executive Officer Bison Transport Inc.

John m. sullivanPresident and Chief Executive Officer The Cadillac Fairview Corporation Limited

kevin m. sullivan 2Deputy Chairman GMP Capital Inc.

Jacques théorêtPresident Mercer (Canada) Limited

bill thomasChief Executive Officer and Senior Partner KPMG

guy J. turcotte 2President and Chief Executive Officer Stone Creek Resorts Inc.

louis o. vachon 1President and Chief Executive Officer National Bank of Canada

dirk van de putPresident and Chief Executive Officer McCain Foods Limited

Anne marie verstraetenPresident and Chief Executive Officer BNP Paribas (Canada)

frank vetteseManaging Partner and Chief Executive Deloitte & Touche LLP

curt vossenPresident Richardson International Limited

michael t. waitesPresident and Chief Executive Officer Finning International Inc.

v. prem watsa 2Chairman and Chief Executive Officer Fairfax Financial Holdings Limited

richard e. waughPresident and Chief Executive Officer Scotiabank

steve westChief Executive Officer Nordion Inc.

galen g. weston 2Executive Chairman Loblaw Companies Limited

gary whitelawChief Executive Officer Bentall Kennedy Group

steve williamsPresident and Chief Executive Officer Suncor Energy Inc.

michael m. wilson 1President and Chief Executive Officer Agrium Inc.

robert youden 3Chair Canadian Chamber of Commerce

MEMBERSHIP


council staff

the honourable John manley, p.c., o.c.President and Chief Executive Officer

chantal royExecutive Assistant to the President and Chief Executive Officer

susan scottiSenior Vice President, Planning and Operations

sam boutziouvisVice President, Policy, International and Fiscal Issues

John dillonVice President, Policy and Corporate Counsel

ross laverVice President, Policy and Communications

nancy wallaceVice President, Corporate Services

Joe blomeley Policy Analyst

brian kingstonPolicy Analyst

sarah reidCommunications Officer

monique raymond-dubéExecutive Assistant

patricia matchemSenior Administrative Associate

kristen garantAdministrative Associate

meagan lachanceAdministrative Associate

99 rue Bank StreetSuite/bureau 1001Ottawa (Ontario)Canada K1P 6B9Tel 613-238-3727www.ceocouncil.ca

Documents

INNOVATION PRODUCTIVITY PROSPERITY · 2013-12-20 · innovation strategy. Later, CCCE member Tom Jenkins of Open Text Corporation was selected to lead an independent review of federal