Ontario Canada: Emerging Strong 2013

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occ.on.ca | @OntarioCoC legermarketing.com | @legerwebmowatcentre.ca | @mowatcentre

Emerging Stronger 2013

2013 Ontario Chamber o Commerce, Mowat Centre or Policy Innovation, Leger Marketing

PDF ISBN: 978-1-927350-36-2

Print ISBN: 978-1-927350-35-5

2013


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contentsWhat the Party Leaders are Saying about Emerging Stronger

Letter to Ontarians

Working Together

The Ontario Business Confdence Index

Regional Sentiment

Fostering a culture o innovation and smart risk-taking in order to become a

productivity leader

Building a st century workorce through workplace training, utilizingnewcomers skills, and apprenticeship reorm

Restoring scal balance by improving the way government works

Taking advantage o new opportunities in the global economy

Identiying, championing and strategically investing in our competitiveadvantages in the global economy

Conclusion Summary o Recommendations

Acknowledgements


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What the PaRtY leadeRs aResaYing about EmErging StrongEr

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- Premier of Ontario, Dalton McGuinty

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- Leader of the Progressive Conservative Party of Ontario, Tim Hudak

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EmergingStronger2013

It has been one year since the Ontario Chambero Commerce, the Mowat Centre, and LegerMarketing released Emerging Stronger 2012:

A Transormative Agenda or Ontario.

Emerging Stronger 2012 set out an economic

agenda or the province that could bestbe pursued i the ederal and provincialgovernments work together, with the privatesector, academia, and labour, to achieve success.

A amiliar rerain among concerned Ontariansis that the province aces a clutch moment.Ontarios nances are altering under the weighto accumulated decits. Our provincial debt is

approaching $ billion. Interest payments onthat debt now represent the third largest area oprovincial spending ater health and education,crowding out investments in other programs.Many sectors that were once Ontariosstrengths are now struggling. More than ever,Ontarios businesses ace sti competitionor investment, markets, and talent.The Ontario Chamber o Commerce, theMowat Centre, and Leger Marketing areprooundly condent that Ontario has allthe assets it needs to secure its position asthe worlds best place to do business, invest,work, and live. But we need to act collectively,strategically, and with purpose. Herein lies

the objective o Emerging Stronger 2013.

letteR to ontaRiansWe have been on an incredible journey sinceEmerging Stronger 2012 was released. The OCChas criss-crossed the province engaging its local chambers and their , members,and building our research agendas aroundit. And the OCC has taken action, including

hosting eight regional economic summitsacross the province, where hundreds oOntarians identied key economic priorities.

Emerging Stronger 2013 surveys the progressthat business, government, and civil societyhave made over the past year. It identiesthe challenges we still ace, and sets out thetangible steps we must take to ensure that

Ontario emerges stronger rom this periodo economic transition. We are pleased toreport that much progress has been made.However, there is much more to be done.

This is the beginning o a new era orOntario. The province must embrace atransormative agenda that will challengeOntarians to meet our huge potential.

We hope that you will join us in movingthis agenda orward so that Ontariocan emerge stronger, more productive,and more globally connected.

-Ontario Chamber of Commerce & Mowat Centre


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WoRKing togetheRIn , the Ontario Chamber o Commerce (OCC) and the MowatCentre partnered with Leger Marketing to develop Emerging Stronger 2012:

A Transormative Agenda or Ontario. Emerging Stronger 2012 identied vepriority areas where Ontarios business, government, and civic leadersshould ocus their eorts in transorming the provinces economy:

. Fostering a culture o innovation and smart risk-takingin order to become a productivity leader

. Building a st century workorce through workplace training,utilizing newcomers skills, and apprenticeship reorm

. Restoring scal balance by improving the way government works

. Taking advantage o new opportunities in the global economy

. Identiying, championing, and strategically investing in ourcompetitive advantages in the global economy

Since Emerging Strongerwas released in January , its message hasbeen met with widespread enthusiasm and support. It has reached everycorner o the province and has been supported by the Ontario ChamberNetwork o over , businesses and local chambers.

Over the course o , the OCC, the Mowat Centre, and LegerMarketing have taken steps to urther this agenda.

The OCC, under the umbrella o its multi-stakeholder Ontario EconomicSummit (OES) initiative, hosted eight Regional Economic LeadershipSeries (RELS) roundtables across the province. Using the ve prioritiesidentied in Emerging Stronger 2012 as a lens, the roundtables elicitedeconomic priorities rom each region (see Regional Perspectives, page ).


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Together, the priorities identied in the RELS inormed the content

o the annual meeting o the Ontario Economic Summit (OES) heldin Niagara-on-the-Lake in November . The OES convened o Ontarios top business and civic leaders to carve out an agenda tomake the province more competitive. The top priorities identiedthrough the RELS and the OES can be ound in this report.

The OCC has also released a research paper, A Federal Agendaor Ontario, which outlines a ederal economic strategy orOntario. Meanwhile, several OCC taskorces are delving

urther into key parts o the Emerging Strongervision.

The Mowat Centre has developed a new slate o research projects to urtherthe Emerging Strongeragenda by identiying new opportunities to grow theOntario economy and connect the province to the rest o the world. Theseprojects eplore the uture o Ontarios manuacturing sector, the economicpotential o Ontarios rich diaspora networks, the structure o corporatetaation, and greater cross-border integration in the Great Lakes Region.

In late , Leger Marketing completed the Ontario Business ConfdenceIndex, a survey o , businesses and organizations rom across theprovince. The results o that survey inorm this report. As the largestCanadian-owned polling, research, and strategic marketing rm, LegerMarketing is lending their considerable epertise in public opinion pollingto conduct quarterly surveys throughout on behal o the OCC.

With cooperation in mind, the OCC and the Mowat Centreoer a ollow up to Emerging Stronger 2012. Emerging Stronger 2013begins with our annual Ontario Business Confdence Index. Then,or each o the ve priority areas set out in last years report, weassess the progress made, we outline the challenges we ace, andnally, we lay out a policy roadmap or the net several years.

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FinancialServices8

7%

74%

BusinessServices7

5%

69%

Hospitality&Leisure7

5%

55%

Average7

2%

60%

Energy&Utilities7

0%

54%

Engineering,Construction,

&Inrastructure

69%

59%

Manuacturing

&Auto

70%

58%

Retail

67%

49%

HealthCare6

6%

67%

ICT

66%

61%

Government

65%

32%

Not-or-Proft

64%

48%

Chart 1Businesses are confdent in their own outlooks and are likely to expand.

Condence in organization* Plans to epan d**

* How condent are you in your organization's economic outlook as o right now?**Based on the way the Ontario economy is operating right now, whould you say thatin the net ver years, your organization will epand, decrease, or remain the same?

Chart 4Productivity concerns are prevalent across theeconomy, with business services, manuacturers,plus not-or-proft leaders citing the most concern.

Hospitality & Leisure 16%

Health Care 14%Financial Services 14%

Retail 12%Energy & Utilities 11%

Average 10%ICT 9%

Engineering, Construction,& Inrastructure

8%

Business Services 7%

Government 7%

Manuacturing 7%

Not-or-Prot 7%

Sel identiy sector as productivity leader

Condent inown organization*

72%

Economy is heading

in the right direction**41%

Chart 2But, businesses aremore confdent in theirown organization thanthe economy overall.* How condent are you in your organizations economic outlook as o right now?**In a global economic contet, do you believe the Ontario economy is going in theright or the wrong direction?

Chart 3Only 10 percent o business leaders say their sectorsare global leaders in terms o productivity.

More alarmingly, 35 percent say their sectors are alling behind.

Global productivity leader

Staying with the pack

Falling behind

Dont know/not sure

When it comes to your sector, would you say that compared to other regions in theworld, Ontario business is leading in productivity?

Chart 6Even though smallbusinesses are lessconfdent in theeconomy, they are aslikely to expand theiroperations.

Sm

all

59%

27%

10%

Medium

57%

28%

15%

La

rge

63%

21%

12%

Based on the way the Ontarioeconomy is operating now,would you say that in the netve years, your organization willepand, decrease, or remain thesame?

Chart 5Small business isgenerally less confdentin the economy.

Small

36%

22%

43%

Medium

34%

23%

43%

Large

26%

21%

53%

How condent are you in theOntario economy right now?Small = employees

When it comes to your sector, would you say that compared toother regions in the world, Ontario business is leading inproductivity?

Based on a survey conducted by Leger Marketing in November-December . , responses.

Not condent

Neutral

Condent EpandRemain the same

Decrease


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Percentage o respondents who say Ontario economy is heading in the right direction. Average = .

Northwest

Northeast

Gta

Gha

east

soUthwest

CeNtraL

. Create stronger linkages between

colleges, universities, and businesses

to oster innovation.

. Reach out and create partnerships

with diverse community groups to

attract skilled labour to the area.

. Integrate business in school

curriculum in order to promote

a culture o entrepreneurship.

. Create stronger linkages between

colleges, universities, community

groups, and business to take ull

advantage o the skills base.

. Close the skills gap by ing the disconnect between

the education system and industry reality (supply and

demand) and reorming the apprenticeship system.

. Fi Sudburys image problem to attract skill to the area.

. Create bridges between employers and secondary school institutions to make students aware

o the skills and jobs in demand; develop a curriculum that osters proessional development,entrepreneurial training, epectations o business, work ethics, and proessionalism.

. Ensure all municipal leaders speak with one voice in order to realize the

broad benets o coming together as one powerul economic region.

. Add value to agriculture by embracing agricultural businesses and

recognizing it as one o Ontarios competitive advantages.

. Fi the immigration system by identiying the barriers to attracting

immigrants and oreign students to work and study in Ontario.

. Build a st century workorce by

leveraging eisting human capital

(youth, people with disabilities,

and Aboriginal peoples).

. Create a transportation system that

addresses the needs o the GTHA.

. Position health sciences as a wealth creator by eporting

our innovation and unique delivery models and

eploiting new platorms or commercialization.

. Epand innovation and research partnerships in advanced

manuacturing in order to push the innovation envelope, to address

productivity, drive more investments in research and development.

. Develop Aboriginal peoples

skills through training and

education to capitalize on

Ontarios untapped potential.

. Support emerging youth

leaders in order to promote a

culture o entrepreneurship.

Regional perspectives as dened through the Ontario Economic Summits Regional Economic Leadership Series, using Emerging Strongeras a ramework.

For updates on the progress these communities are making on their shared priorities, visit occ-oes.ca.

Regional PeRsPectives

46%

41%

42%

36%

38%

48%

44%


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In 2012, we noted that Ontarios innovationgap is a major barrier to increasingproductivity and prosperity. This notion hasbecome almost clich. The province, theederal government, and numerous privatesector organizations have undertakenextensive assessments o the innovation andproductivity problem.

However, progress has been slow: only 10

percent o Ontario businesses eel theirsector is a leader in productivity. Although weare ar rom a comprehensive set o solutions,we are happy to report signifcant andmeaningul progress.

1. Fostering

a culture oFinnovation

& smart risk-

taking in order

to become a

productivity

leader


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PROGRESS

Ontario continues to attract oreign investment. According to the Financial Times,Ontario attracted more oreign capital investment in than any other state orprovince in North America ecept Alberta. Ontario ranks rst among all majorjurisdictions in North America in oreign direct investment (FDI) per capita.

Ontarios marginal eective ta rate (METR) on new business investment is. percentnearly hal the average American METR o percent and lowerthan the average METR o percent among Organization or Economic

Cooperation and Development (OECD) countries (Ministry o Finance, ).

Venture capital supports have been enhanced. The ederal government has setaside an additional $ million and $ million respectively or the BusinessDevelopment Bank o Canada and the creation o large-scale venture capitalunds. This will encourage more private-sector R&D across the country.

In December , the Government o Ontarios Jobs and Prosperity Council (JPC)released its nal report,Advantage Ontario. It outlines a series o recommendations

or improving the provinces long-term productivity and competitiveness. Theserecommendations, particularly those around procurement, entrepreneurship,and business supports make a welcome contribution to the policy discussion.

Access to capital or smaller rms is set to grow. The Government oOntario has recently announced its intention to rela the rules restrictingcrowdundingthe practice o pooling investor unds or a charitable orcommercial enterprise, usually via the internet. This move will providestartups and small businesses with a new means o accessing capital.

Canadian businesses are starting to invest in productivity. A poll by the BusinessDevelopment Bank o Canada ound that percent o businesses plan to invest inthe coming year, mostly in new machinery and equipment. Surveyed businesses citeboosting productivity and developing new markets as their top reasons or investing.

The Canada Not-or-proft Corporations Act, which came into eect inOctober , has simplied and dramatically reduced processing timesor incorporation applications at the ederal level. Ontarios Not-or-ProftCorporations Act, will do the same at the provincial level starting in .

PULse CheCKWhat do you think about the

direction Ontario is taking whenit comes to ostering a culture oinnovation and smart risk-takingto become a productivity leader?

Dont Know9.8%

Right Direction33.4%

No Change40.3%

Wrong Direction16.4%


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CHALLENGES

The Ontario Business Confdence Index shows that, relative to their international peers:

percent view their sector as a leader in innovation

percent eel their sector is a leader in productivity

percent see their sector as a leader in re-investment

percent identiy their sector as a leader in research & development

percent believe their sector is leading when it comes to taking risks

According to some observers, businesses are simply not being creativeenough with the capital and labour they have (Financial Post, July , ).

A recent Deloitte study ound that Canadian business leaders [are] less tolerant o risk than their U.S. peers. Canadian businesses need toembrace the risk-taking culture o their international competitors.

Our labour productivity growth continues to lag behind that o our U.S.counterparts. Over the last years, U.S. labour productivity growth

has outpaced that o Canada by an average o . percent a year.

According to the JPC, American manuacturers spent $, per employee onnon-residential ed assets in , compared to approimately $, in Ontario.Our own survey o Ontario manuacturers reveals that percent o leaders eeltheir sector lags behind their international competitors on re-investment.

Both the ederal and provincial governments have or are undertaking reviews otheir business supports and innovation programming in order to streamline and

deliver a greater return on investment. However, businesses are stil l conrontedby a hodge-podge o direct and indirect programs, because these eorts areuncoordinated (Commission on the Reorm o Ontarios Public Services).

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NExT STEPS

Dic nd indic upp r&D uld b cdind pincilnd dl ll to meet the needs o businesses at all stages o development,including startups. The application process or supports should be simplied andthe opportunity cost o seeking assistance minimized. Companies should beallowed to leverage ederal unding to receive provincial assistance and vice versa.

Gnmn nd b cdin i ciii nd uc c lgcl inmn in oni. The province aces increasingly sti

competition or investment rom world-class companies, which are major innovationdrivers. Ontarios ministries, along with their ederal counterparts, need a transparent,coordinated, and systematic process or attracting major investments to the province.

F npnuip in clm. I we accept that cultureaccounts or at least part o the eplanation or the entrepreneurship gapwith the U.S., then we must address it via the education system. This includesbuilding entrepreneurship into high school and university curricula, not justour MBA programs. See the Ryerson University case study on page .

Mk cmmciliin p unii mnd. Ontario universities are worldleaders in R&D. The problem is that ar too little o their work gets commercialized.Previous support programs have not meaningully closed the commercializationgap. Government must make commercialization part o universities mandates.

Lg public c pcumn pu innin. As noted by the JPC,many jurisdictions use public sector procurement to drive the developmento innovative products, particularly in growing rms. Ontario should ollow suit

and implement a strategic procurement policy. This way, companies sellingto the public sector could use the public sector buyer as a reerence client todrive eport sales and gain access to nancing. Sectors such as lie sciences,manuacturing, and energy would benet rom revamped procurement.

ebli cdunding gim in oni. Crowdunding or nancial gain iscurrently not permitted under Ontario law. With the advent o theJOBS Act in the U.S.and the establishment o an American crowdunding regime, Ontario must update itslegislation and regulations in order to provide its startups and SMEs with comparable

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levels o access to seed and venture capital. While Ontario has signalled its intention toloosen the rules restricting crowdunding, it must ollow through on that commitment.

oni buin nd in in l pducii.Perhapsmost worrying is the Ontario-U.S. Inormation and CommunicationsTechnology (ITC) investment gap, which currently stands at percent.

opn up public d. The provincial government and municipalities sit on a treasuretrove o data that could be repurposed by entrepreneurs and technology rms tocreate valuable sotware applications and other innovations or commercial purposes.

As o January , the Ontario governments open data portal holds just data sets.

all cllg pl bigg l in diing innin. Collegesare key players in the commercialization process. They must be giventhe reedom to allocate their eisting unds and resources, specicallyaculty, in a manner that responds to local innovation imperatives.

Imp npnc in gulin. Ontario is one o the ewjurisdictions in the world that does not publish the rationale or, and the

cost-benet analyses o regulations. The only requirement is to publishthe content o regulations. Public servants need incentives to consultinternal and eternal stakeholders and get it right the rst time.

add cumuli gul budn n buin. Thegovernment should introduce an ongoing process or monitoring theweb o rules that builds upon the burden reduction eercise led by Openor Business rom to . The cumulative regulatory burden onbusiness should be reduced to improve Ontarios business climate.

oni uld puu implid x m. Ontario must ensurethat its ta system makes it the most attractive destination or businessinvestment and development in the OECD. Corporate taation reorms mustimprove both the eciency and eectiveness o corporate taation.

oni uld cninu pu cmmn scuii rgul. Canadais the worlds only major industrialized country without a single securitiesregulator. A single securities regulator would increase access to capital andwould also solidiy Torontos position as a major global nancial centre.

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13

University o TorontosBanting and Best Centre

or Innovation andEntrepreneurship

CoMMerCIaLIzING researCh

The problem: Too many proessors and students have to leave the innovation

ecosystem (the environment in which the discovery was made) to commercialize

their inventions, thereby losing access to students, academics, and laboratories.

A solution: Using surplus space, the University o Toronto created the Banting

and Best Centre or Innovation and Entrepreneurship to develop early-stage

enterprises and spin-of companies to commercialize academic discoveries.

Tenants pay market rents but benet rom in-house cross-pollination in marketingand business know-how while maintaining access to nearby labs and students.

The results to date: Companies inside the thriving Banting and Best Centre or

Innovation and Entrepreneurship have created 79 jobs (all private sector) and

have raised a total o $22.8 million in private and public sector investments.

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Ryerson Universitys

Entrepreneurial Zone

CreatING a CULtUre oF eNtrePreNeUrshIP

The problem: Too many students are leaving university without business acumenand the knowledge to start a business and/or commercialize their innovative ideas.Ontario rms consistently cite a lack o business and real-world skills as asignicant impediment to growth.

A solution: Ryerson University uses an entrepreneurial zone model in elds inwhich it is already an established educational leader. Within the net two years,

Ryerson plans to add entrepreneurial zones in elds such as: Aerospace, Design,Health, and Social Entrepreneurship. The aim is to have percent o all Ryersonstudents involved in the development o a company, product, or service by thetime they graduate.

The results to date: Since Ryersons highly successul Digital Media Zone opened inApril , cutting-edge startups have been incubated and accelerated and jobs have been created through startups and market-driven research. We canepect similar results rom uture entrepreneurial zones.

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2. building a

21st century

workForcethrough

workplace

training, utilizing

newcomers skills,

& apprenticeship

reForm

Ontario sufers rom a paradoxicalchallenge. Rates o unemployment andunderemployment are high. At the sametime, Ontario aces massive labour and skillsshortages in key sectors. The ConerenceBoard o Canada predicts that i unaddressed,Ontarios skills gap could reach 560,000 by2030 (Conerence Board o Canada, 2007).

The mismatch between supply and demandcontinues to be a signicant barrier toOntarios economic transormation.


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PROGRESS

Reorming Canadas Employment Insurance (EI) system was identied as a priorityin last years Emerging Strongeragenda. The Mowat Centre has been a leading voicein the campaign to remove barriers to labour market retraining or underemployedCanadians. As recommended by the Mowat Centre EI Task Force, the ederalgovernment has eliminated the so-called Best Weeks pilot project, whichcaused premiums on Ontario workers and businesses to be unnecessarily high whileproviding Ontarians with lower EI benets than workers elsewhere in Canada.

Ontarios Epert Roundtable on Immigration identied a path orwardor the provinces immigration system, emphasizing the need orOntario to use the system to plug skills gaps in its labour orce.

The ederal government is moving ahead with an Epression o Interest (EOI)model and is in the process o allocating provincial quotas or skilled labour. An EOImodel is designed to better connect immigrants with employment opportunitiesand plug labour market gaps. Ontario, along with other provinces, has epressedsupport or the ederal governments EOI concept and has asked the ederal

government to work with the province in the design o the new approach.

The ederal government has also epanded the Canadian Eperience Class (CEC)program, which acilitates the transition rom temporary to permanent residenceor those with high-skilled eperience in Canada, including international studentsand temporary oreign workers. Admissions under the CEC have increasedrom about , people in to more than , in . In , the ederalgovernment will accept up to , permanent residents through the program.

The province has renewed the Second Career retraining programsmandate or -, to the tune o $ million. This will serve ,workers. Second Career has beneted , workers to date.


direction Ontario is takingwhen it comes to building

a st century workorcethrough workplace training,utilizing newcomers skills,

and apprenticeship reorm?

Dont Know7.8%

Right Direction41.4%No Change37.1%



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CHALLENGES

Our Ontario Business Confdence Index results on page show that percento Ontario business leaders believe the province is heading in the rightdirection in terms o building a st century workorce through workplacetraining, utilizing newcomers skills, and apprenticeship reorm.

The ederal government has implemented changes to the EI program that will addresssome o its distortionary labour market incentives, but structural inequities continue.Overall, the program remains a barrier to building a st century workorce in Ontario.

The single largest pool o unding or worker training in Canada is linkedto the EI program. Because Ontario has a comparatively low percentageo EI-eligible workers, the province is signicantly short-changed onederal training dollars, to the tune o almost $ million a year.

The number o economic immigrants to the provincethose selected on the basiso their skills or employment prospectshas declined severely over the last decade,rom , in to , in . Ontario employers are very concerned.

As the nal report by the Commission on the Reorm o Ontarios Public Services(also known as the Drummond Commission) noted, employment and trainingprograms are not strategically organized nor consistently evaluated against labour-market success actors, clear targets or perormance measures linked to outcomes.The return on tapayer investment in training is not adequately transparent.

More than hal o on-reserve First Nations between the ages o - havenot nished high school, compared with only percent o Canadas overall

population in that age group. The employment rate or Aboriginal peoples is .percent, well below the employment rate or the non-Aboriginal population.

Aboriginal youth are Canadas astest-growing demographic, growing percent between and . An estimated , Aboriginalyouth will reach working age between and .

About . million people in Ontario, or . percent o the population, live with adisability. The unemployment rate among people with disabilities with post-secondaryeducation is to percentage points higher than the national average. Evidencesuggests that employer misperceptions are a major reason or this discrepancy.


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NExT STEPS

t dl gnmn uld implmn cmmndin M Cn eI tk Fc, including reorms to eliminate the regionaldiscrepancies in coverage and to delink training unding rom EI and insteadund training through general revenue. This would make available signicantnew unds in Ontario or training workers who are currently not on EI,whether they are under-employed, looking to enhance their skills, concernedabout the uture o their sector, or have been out o the labour market.

Implmn cmmndin oni exp rundbl nImmigin. To ll its skills gaps and increase its human capital, at a minimumOntario needs to boost its level o immigration to , people per year (theequivalent o percent o its population), a signicant increase rom the ,immigrants Ontario received in . Sity-ve to seventy percent o these immigrantsshould be economic class immigrants, an increase o - percent rom current levels.The ocus o immigration policy should be on building the provinces human capital.

Buin nd k b dng xiing ppunii,uc

Pincil Nmin Pgm, in glbl ln. Theyshould also develop eplicit strategies, such as Kitchener-Waterloos ImmigrationPartnership Council, aimed at integrating immigrants and reugees into the workplaceand taking better advantage o credentials and eperience gained internationally.

oni nd dl gnmn uld cllb in dign ndimplmnin n expin In eoI immigin mdl. An EOImodel would allow employers to select rom a pool o pre-screened immigrationapplications. This is a promising opportunity to enhance the feibility, responsiveness,

and speed o economic immigration to Canada, with the potential to ocuson top talent and human capital. By collaborating in the design o the EOI, theOntario government will have greater infuence on the selection o immigrants.

oni uniii nd cllg uld xpnd cuimn iniiiimd inninl udn. Furthermore, post-secondary institutionsshould promote the Canadian Eperience Class program to all oreign studentswithout a job oer to transition to permanent resident status. This may requiremore on-campus settlement and integration services or international students.


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oni buin mu cpili n unppd pnil oni abiginl ppulin. The Aboriginal population is the astestgrowing in Canada. Businesses can engage aboriginal students through workplacements and co-op programs. See Imperial Oil Case Study on page .

t dl gnmn mu cl unding gp n abiginlducin. It is generally accepted that ederal unding or Aboriginal educationalls signicantly short o parity with provincial education spending on a per-studentbasis. Creating a leading-edge workorce requires the ull participation o Aboriginalpeoples in the labour market. Full participation is contingent on providing opportunity

through adequately unded, outcomes-ocused, and culturally appropriate education.

oni nd inn i mplmn nd ining ic. Ontarioshould invite competition and greater employer participation into employmentand training services. Private sector and not-or-prot participation in trainingsupports should be commissioned on a payment by results basis.

empl nd cgni pnil ppl i dibilii.The OCC and its members will work together to leverage the strong

potential o this group and actively combat negative perceptions.

oni ppnicip m nd bcm m fxibl.Ontarios skills gap can be narrowed by reorming the provincesoutdated journeyperson to apprenticeship ratios. By bringing the ratioacross all trades as close to : as soon as easible, Ontario will join themajority o Canadian provinces that have already taken this step.


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The SEED program wascreated by Imperial Oiland Si Nations o theGrand River Territory

taPPING INto the PoteNtIaL oF oNtarIos

aBorIGINaL PeoPLesThe problem: Employers ace increasing skills shortages in key sectors. Yet OntariosAboriginal employment rate is ar below that o the non-Aboriginal population.

A solution: Imperial Oil has shown an eagerness to tap into the potential o OntariosAboriginal peoples while closing the Aboriginal education attainment gap in theprocess. In , the Science Education and Employment Development (SEED)program was created by Imperial Oil and Si Nations o the Grand River Territory. Theagreement supports technology education and employment initiatives ocused onproviding people with skills required or careers with Imperial, the petroleum industry,and other manuacturing industries.

The results: Since , SEED has invested over $ million in education and skillstraining related initiatives, including:

the Native Diploma Access Program which allows mature students to earn eighthigh school credits towards their grade diplomawith a ocus on math and

science. Since , students have completed more than high school credits; the Bridging Our World Through Science Program, which brings students rom

grades and to Brock University or a two-day Aboriginal Outreach program.Participants learn about career options in the science elds. Post-camp surveysshow that more than hal o the students indicated this program increased theirinterest in pursuing post-secondary education.

CasestU

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Bombardier andCentennial College

have a Memorandum o

Understanding to trainemployees andupgrade skills

BrIDGING the sKILLs GaP

The problem: Ontarios aerospace sector aces a current and growing shortall oskilled employees. As Ontarios biggest aerospace employer, Bombardier has ,employees and depends on skills upgrading in order to stay at the cutting edge olean, ecient production processes. The average employee age at BombardiersDownsview Aerospace Facility is , and Bombardier will have to replace hundredso workers in the coming years.

A solution: Direct partnerships between employers and post-secondary

institutions designed to integrate the classroom into the workplace and allowstudents to upgrade their skills in real time.

Results to date: Bombardier and Centennial College have a Memorandum oUnderstanding whereby Centennial College will train Bombardier employees in to -week programs over the net two years. A ull training curriculum has beenjointly developed. Bombardier has invested approimately $ million in an on-site Learning Centre at its Downsview acility, where the company manuacturesbusiness and commercial aircrat.

CasestU

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Last year we identied sound scalstrategiesbalanced budgets, reasonabletaxation, and efcient public servicesasbeing critical to Ontarios uture prosperity.

Some progress has been made towardsreducing the provinces decit. But the needor scal and public sector reorms remains.We must continue to identiy new ways odelivering better services at less cost and seeka airer deal or Ontarians rom the ederalgovernment.


24

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3. restoring

Fiscal balance

by improving

the way

government

works


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PROGRESS

The Ontario Budget committed Ontario to an annual average growth inprogram spending o percent between and a signicantreduction in real-term ependiture.

Getting the provincial health care budget under control is critical to eliminating thedecit. The Ontario government is moving toward a patient-centred undingmodel in the health care system. Under this approach, hospitals and other healthacilities will be unded based on the types and volume o services and treatmentsthey deliver. This will encourage eciency in the health system.

The government has also indicated it will shit routine health procedures currentlyconducted in hospitals to non-or-prot, community-based clinics where they canbe perormed aster, at lower cost, while maintaining quality.

The ee schedule or physicians has been adjusted to refect changes in medicaltechnologies, as recommended in the Mowat Centres Shiting Gears series. Theseadjustments are epected to save tapayers $ million a year.


direction Ontario is takingwhen it comes to restoringscal balance by improvingthe way government works?

Dont Know6.6%


No Change32.6%



26/49


CHALLENGES

Ontarios decit is $. billion and its provincial debt is approaching $ billion, which isover $, per man, woman and child.

Ontarios debt to GDP ratio will hit percent in -; its debt to GDP ratio has morethan tripled since .

In April , Ontarios credit rating was downgraded by Moodys in response to arising debt burden and slow economic growth outlook. A percent increase in thecost o borrowing will crowd out another $ million in annual program spending.

The ederal transer system continues to disadvantage Canadas mostpopulous province. In spite o Ontarios scal woes, Ontarians payroughly $. billion more into the ederation than they get back.

Ontarios per capita program spending is already the lowest o any province,at $, in -, which is percent below the provincial average.

The reality is that little progress has been made this year on introducing greaterparity in ederal scal transers. The ederal government announced in December that the Equalization program will not be re-adjusted in response to Ontariosconcerns. In act, the technical changes to the program announced by theederal government are likely to cost Ontario about $ million per year.

Inrastructure is critical to Ontarios competitiveness. According to a OCCsurvey o its membership, ater decit and red tape reduction, the numberone public policy priority or business is inrastructure renewal. However, all o

Ontarios inrastructure budget will be absorbed by amortization costs by .


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NExT STEPS

t pi nd np c uld pl bigg l in dliingpublic ic. While Ontario routinely partners with the private sector on capitalprojects, there is ample opportunity to seek new partnerships or service delivery,particularly in those areas where private and not-or-prot epertise already eists(e.g. health care, skills training, insurance, and inormation technology support).Alternative service delivery should always be considered when it can achievecost-savings without compromising the quality o the service in question.

t pi nd public c mu d i p lp oni g bck cl blnc. For businesses, this means accepting a delay in scheduledbusiness and corporate ta rate reductions and the end o certain businesssupport programs. For the broader public sector, this means recognizingthat compensation restraint is needed to control rising labour costs.

smlin public c pcumn.The Ontario government shouldconduct a lean assessment o its procurement processes, identiying elementsthan can be streamlined or eliminated to increase eciency and make it easier

or SMEs to participate. Both suppliers and government would benet romaster turnaround times and less resource-intensive procedures. This typeo review has been successully undertaken by the UKs Cabinet Oce.

Cl $. billin gp. Because o the unprincipled nature o Canadianederal scal arrangements and unding agreements, Ontarians and Ontariobusinesses are oten short-changed. The ederal government needs to reormEqualization and create a national standard or EI access, and the unding gapsin inrastructure, training, housing, and regional economic development unds.

tckl undgund cnm inc nu.The underground economymakes it hard or legitimate businesses to compete. Ontario needs tougher penaltiesor noncompliance and a stronger ocus on high-risk industries. The DrummondCommission estimates that these and other compliance measures could yield over$ million per year or the province. The Drummond Commission also notes thatmany nes valued at $ billion under the Provincial Oences Act (POA) remainuncollected. The province should take more aggressive action to collect this money.


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Dlp n mngmn mk. The Ontario Ministry oFinance put the value o provincial public assets at $ billion in . Public

discussion on how government should best manage its assets oten centreson the choice between public ownership and privatization. A new assetmanagement ramework should be developed that includes the ull range ooptions available or the management o public assets and looks to protectthe public interest while increasing revenues. The Mowat Centre will bereleasing a report outlining opportunities on this ront in spring .

engg onin in dicuin n p u inucu.Thegovernment simply does not have the resources to und large inrastructure projectsthrough general revenues. While engaging the private sector in partnerships canll unding gaps, major projects require additional sources o revenue. The BigMove, Ontarios transportation plan or the Greater Toronto and Hamilton Region,is an opportunity to engage all stakeholders in a dialogue on revenue tools.

Unl pi cpil public gd. Ontario and Canada have made enormousinvestments in our inrastructure throughout our history. These projects, includingthe St. Lawrence Seaway, railways, public transit, and our highway system, all created

the oundation or the prosperity and quality o lie we enjoy today. There will notbe the same volume o public unds available in the coming decade to reinvest inthe modernization o our inrastructure. However, new and established vehiclesrom bonds and Ps to leasing and concession agreementsliberate privateunds or public purposes. These must be used more requently and rigorously.


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INNovatIoN throUGh sPeCIaLIzatIoN

The problem: Health care costs are consuming an increasing percentage o theprovincial budget, crowding out spending in other areas.

A solution: Kensington Health is a group o not-or-prots and charities that deliversa variety o health services in Toronto. Kensington Health delivers publically undedhealth services outside o the hospital setting.

The results to date: By ocusing on a routine procedure, Kensingtons Eye Institute has

developed a specialization that has lowered cost per procedure and increased patientvolume. The Eye Institute perormed nearly , cataract surgeries in and, in while adding glaucoma surgeries, cornea transplants, and non-urgentvitreoretinal services.

By ocusing on a select ew procedures, they [Kensington Eye Institute] canserve more patients more quickly with ecellent patient outcomes.

Ontario Health Minister Deb Matthews,

Kensington Eye Institute 2011-12 Year In Review

CasestU

Dy

By ocusing on a routine

procedure, KensingtonsEye Institute hasdeveloped a specializationthat has lowered cost perprocedure and increased

patient volume


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FoCUsING oN oUtCoMes, Not ProCess

The problem: The recent economic downturn has let governments across the globecash strapped. Yet citizens epectations with regard to services have not diminished.Governments need to nd new service delivery and back oce models that improveservice and lower overall cost.

A solution: Perormance-based contracting is emerging as a powerul solution orgovernments seeking to manage costs while enhancing service quality. In ,British Columbia selected MAxIMUS Canada to administer the provincial medical

and drug benets programs (Health Insurance BC) including the people, process,and technologies. BCs decision to use a private operator was spurred by servicechallenges and a lack o capital to invest in new technologies.

The results to date: Since , MAxIMUS has met all new service levelrequirements (or business, technology, and privacy) or Health Insurance BC. Foreample, all calls rom citizens and providers are answered within specied timerames whereas prior to handover to MAxIMUS, more than percent o callsencountered a busy signal. Furthermore, the contract requires MAxIMUS to makesignicant capital investments to replace aging technology supporting the twoprograms, investments that the province retains ownership o at the conclusion o thecontract.

CasestUDy

The opportunities

or private sectorinvolvement in Ontarioservice delivery are

numerous and etendwell beyond health

insurance


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31

4. taking

advantage

oF new

opportunities

in the global

economy

Ontarios economic prospects have alwaysbeen tied to trade. Markets in the U.S., andparticularly Great Lakes states, remain vitallyimportant to the Ontario economy. But moremust be done to diversiy the provincesexport markets. Aside rom North America,our Ontario Business Confdence Indexrespondents identied China and India as themost important export markets.

Ontario is the destination o choice or

almost hal o new immigrants to Canada. Theprovince must leverage the links to trade andinvestment opportunities that its immigrantcommunities ofer.


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PROGRESS

Canada has continued to move orward with trade liberalization. Since , Canadahas concluded new ree trade agreements with nine countries: Colombia, Jordan,Panama, Peru, the European Free Trade Association (Iceland, Liechtenstein, Norwayand Switzerland), and Honduras. Canada is working towards a ree trade agreementwith the European Union and is seeking membership in the Trans-Pacic Partnership.

Progress has also been made in Canada-U.S. economic relations. The RegulatoryCooperation Council is working to harmonize cross-border regulation,which is good news or southern Ontarios Great Lakes trade corridor.

The construction o the Detroit River International Crossing (DRIC) hasbeen approved and it appears the major obstacles to its construction havebeen cleared. The DRIC will help Ontario accommodate the epecteddoubling o Canada-U.S. trade fows over the net years.

The Mowat Centre has begun a research project that will develop policyrecommendations or tapping into the huge economic potential o Ontarios

diversity. The province has etensive diaspora networks that connect it to worldmarkets and, most importantly, emerging economies like China and India.

The Ontario government is acting on a JPC recommendation and establishingnew Global Eporter Forums. The Global Eporter Forums should help Ontariobusinesses epand into international markets. The orums are designed toincrease eport activity among Ontario businesses by building awarenesso opportunities in emerging markets. The rst Global Eporter Forum willhighlight the Asia Pacic region, including markets in China and India.


direction Ontario is takingwhen it comes to taking

advantage o new opportunitiesin the global economy?

Dont Know12%


No Change41.5%



33/49


CHALLENGES

Ontario businesses view China and the Great Lakes states as themost critical markets in the net - years. Fity-one percent oOntario Business Confdence Index respondents identiy Great Lakesstates as the most important while percent chose China.

In spite o the importance Ontario businesses attribute to trade diversication,Ontarios eports are ar rom diverse. Close to percent o Ontarioseports are destined or the U.S. Less than percent are bound or India(. percent) and China (. percent). Compare that to Michigan, whose

eports to China now make up . percent o their total eports.

Ontario has robust networks o immigrants with ties to emerging economies.Between and , . percent o all landed immigrants to Ontario camerom India, with a urther . percent arriving rom China. The province has yet totake advantage o the unique trade opportunities that these networks provide.

Ontario businesses are simply not suciently engaged in trade. According to

the JPC, only percent o Ontario SMEs are engaged in eport activities. Theaverage value o Ontario SMEs eports ranks below that o o U.S. states.

Ontarios transportation network is a major part o the provinces inrastructureand a signicant enabler o trade and economic investment. However,the transportation network is badly in need o upgrading. Congestionin the Greater Toronto and Hamilton Area alone costs an estimated$ billion a year. Renewing Ontarios transportation network is critical iOntario is to improve its competitiveness in the decades to come.


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The oCC Glbl GFund can serve as a modelor collaboration betweenthe government and anot-or-prot organization.The Fund has helped over businesses access eportmarkets and collectively

these companies havereported eport sales inecess o $ million.

oni smll Buinenpi Cn shouldbe twinned with their U.S.counterparts in key citiesin the Great Lakes Region.

We need to nd new wayso lowering the inormationand search costs or OntarioSMEs wishing to eport tothe U.S. Both the Ontarioand U.S. ederal governmentsoer assistance to SMEsthrough a network o localsmall business centres.

Cross-border partnershipsbetween these centresshould help boost theproportion o Ontario SMEsinvolved in eport activities.

OCC

|Mowat|Leger

NExT STEPS

oni nd dlp n xp g g cud n sMe.Fewer than in SMEs eport. Programs that connect SMEs to new marketsshould be epanded when value or money can be demonstrated.

C nind cc pin buin king xp inc.SMEs ace high search costs associated with obtaining inormation and access toeport programs, nancing, and intermediaries abroad. Government and serviceproviders across the spectrum will benet rom a one-window approach that poolsresources and supports, enhancing the nancial viability o eporting or SMEs.

oni mu dii i d nd lg i dip cnncin mging mk. The Mowat Centres ongoing research on diaspora networkswill identiy specic policy tools that the province can use to leverage its immigrantcommunities ties to global markets. The Ontario Chamber Network is wellpositioned to play a leading role in connecting businesses both here and abroad.

rm inpincil d bi. Ontarios ability to trade with its provincialcousins is hindered by comple regulatory obstacles. Provinces should continueprogress on eliminating inter-provincial trade barriers as a means o diversiying theirtrade partners.


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Ontarios agri-ood

industry contributes $billion to the Ontario

economy and employsroughly , people

oNtarIos aGrI-FooD INDUstry: reaDyto resPoND to GrowING GLoBaL FooD

DeMaNDThe potential: Few Ontarians realize the undamental role that the agri-oodindustry plays in the provinces economy. Ontarios agri-ood industry contributes$ billion to the Ontario economy and employs , people (Ministry oAgriculture, Food, and Rural Aairs, ), roughly percent o total Ontarioemployment. Ontarios agri-ood eports are worth $ billion a year.

A plan: Strategic reorms to the regulatory regime governing the agri-ood sector

will help the sector thrive and capitalize on the growing global need or qualityood. Reorms to environmental, Workplace Saety and Insurance Board, andlabour regulations should be initial priorities. An eport diversication strategy isalso needed; nearly percent o Ontarios agri-ood eports are bound or theU.S., while less than percent are destined or Asian markets (ecluding Japan).

The potential results: A booming agri-ood sector, aided by an epected doublingo global ood demand over the net years, could generate incredibleeconomic benets or the province. Doubled arm output would generate an

additional $. billion in annual eports.

Case

stUDy


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37

Ontario is undergoing an economic transition.While businesses are slowly recovering from

the economic downturn, many old industriescontinue to struggle.Our future prosperity depends on our abilityto identify and leverage the provincescompetitive advantages in the provision ofgoods and services to global markets.These advantagesincluding fresh water,healthy food, and natural resourcesarefound in abundance in Ontario. It is crucial

that we make the right investments andimplement the right regulatory frameworksthat will allow us to meet the needs of agrowing global market.

5. identiFying,

championing, &

strategically

investing in our

competitive

advantages in theglobal economy


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PROGRESS

Ontarios manuacturing sector is beginning to recover rom the eects o theeconomic downturn. Between and there was a net gain o , jobs.According to our Ontario Business Confdence Index, a majority ( percent) oleaders in the sector epect to epand their operations over the net ve years.

The Mowat Centre is spearheading the launch o the Council o the GreatLakes Region (CGLR) in April . This member-based organizationwill acilitate greater collaboration across borders and sectors within theGreat Lakes Region. It should help ensure that lawmakers and business

on the U.S. side o the border better appreciate how important Ontarioseconomic uture is to American communities in the Great Lakes Region.

Ontarios Ring o Fire represents an unparalleled economic opportunity.Over $ billion worth o new capital investments in the mining sectorwere announced in , including a new chromite smelter in Sudbury.Proposed Ring o Fire mine developments are epected to create morethan , permanent jobs and develop key processing and transportationinrastructure. The new transportation inrastructure required to serve themine will provide year round access to otherwise isolated communities.

Many o the sectors most important to the global economy, includingnancial services, health care, lie sciences, ood processing, assetmanagement, energy, mining and natural resources, and ICT, are growingin Ontario and leading rms are becoming globally important.

Ontario accounts or around hal o Canadas ICT employment (approimately

, jobs). The province-backed Communitech hub in Waterloohas supported the creation o companies and hundreds o jobssince . Our Ontario Business Confdence Index o business leaders inthe ICT sector shows that percent epect to epand their operationsover the net ve years. See page or a breakdown by sector.

PULse CheCKWhat do you think aboutthe direction Ontario istaking when it comes toidentiying, championing

and strategically investing inour competitive advantages

in the global economy?

Dont Know11.9


No Change42.2%



38/49


CHALLENGES

The Great Lakes Region needs stronger strategic direction that includesenhanced collaboration between governments in both Canada and the U.S.,as well as between sectors and industries. This will help promote regionaleconomic growth and improve the management o shared resources.

Ontario has lost , manuacturing jobs in the last ve years. The manuacturingsector remains undamentally important to the Canadian economy. It accounts or percent o the national GDP, $. billion in weekly average salaries, and percent oCanadas eports. Nearly hal o Canadas manuacturing industry is located in Ontario.

Key parts o the provinces manuacturing sector is struggling to adaptto new economic realities. Ontarios businesses are not spendingenough on the physical capital that drives productivity.

Ontario is still years away rom realizing the ull economic benets o the Ringo Fire. Insucient inrastructure remains a key barrier to its development.The area around the Ring o Fire is remote and lacks key components oresource development such as airports, rail access, and all-weather roads.

Sustainable development o Ontarios natural resources requires meaninguldialogue, engagement, and consensus on the distribution o the benets betweenits non-Aboriginal and Aboriginal population. There is much work to be done.


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NExT STEPS

The ederal government and the province need to dlp cn bjci nd plici ili Cnd mnucuing c. Aederal-provincial strategy must refect the needs o industry and should aim tomaintain and promote Ontarios global competitiveness in manuacturing.

Dpl buin upp gicll. Business supports with high returnson investment should be maintained or epanded. As a rst step, the Ontariogovernment must measure the return on investments o its myriad o businesssupport programs. As recommended by the JPC, business supports should

be centralized and delivered by a single ministry. We urge an additionalstepcoordinate ederal-provincial business supports to create a trueone-window access point or businesses seeking government supports.

FdD oni uld b md pmnn nd b dqul undd.The ederal governments regional economic development und orsouthern Ontario, FedDev Ontario, should be given long-term unding.

Mk dlpmn ring Fi pii. Governments must worktogether to address inrastructure, transportation, processing, electricity pricingand availability, and Aboriginal education and labour market access. Leadershipby senior ocials at all levels o government is vital to acilitating timely progressin the development o the Ring o Fire. Costs need to be shared between ederal,provincial, and municipal governments and their private sector partners. All types opartnerships (e.g. public-private partnerships) and nancing (e.g. bond issuances)must be pursued i we are to ully realize the benets o the Ring o Fire.

abiginl, gnmn nd indu ld mu ccl dilgund im build cnuci pnip to ensure that all benetrom the sustainable development o Ontarios natural resources, includingthe Ring o Fire. Government, not businesses, must lead the negotiationswith First Nations to establish a ramework or partnerships.


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ebli cdind ppc ng cnlg inmn.Canadas current approach is ragmented and piecemeal. Canada needs a

national energy policy that encourages long-term unding or R&D, inrastructureinvestments, and a stable policy ramework or energy development. Theprovincial and ederal governments should set long-term targets to ensureeective R&D. The Ontario Ministry o Energy should take a broad view oenergy to encourage more cost eective, integrated energy solutions.

t pi c mu cllb in d ull lg onicmpii dng. The OCC will work to bring together industryleaders with epertise in strategic sectors, and SMEs who are looking

to capitalize on new business opportunities. The OCC will leverage itsnetwork o local Chambers to play a leadership role in building thecapacity o SMEs in sectors such as ICT, energy, and environment.

Lg oni innin dng. Ontario has a vibrant innovationecosystem, nurtured in part by its innovation hubs like Communitech andMaRS. Ontarios lie science sector in particular, contributes to Ontariosinnovation advantage. A PwC study ound that together, Ontario andQuebecs lie sciences sectors employ nearly , people in over, companies. In order to spur growth in that and other innovativesectors, Ontario needs to increase access to venture capital and rewardinnovative companies through its public sector procurement system.


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INvestING IN oNtarIos CoMPetItIveaDvaNtaGes (the 3 M)

Music

The potential: Ontarios music cluster is ripe or growth. Over percent o theeconomic activity o the sound recording industry in Canada takes place inOntario. Total revenues or the Ontario sound recording industry totaled $million in . Live music urther adds hundreds o millions o dollars in economicactivity.

A plan: Ontario has not yet ully capitalized on the strategic advantage it enjoys in

the global music industry. Targeted provincial support is needed.

The potential results: According to an independent analysis, strategic provincialsupports or Ontarios sound recording industry could generate , new jobs andalmost $ million in new economic output. The province could urther leveragemusic to attract tourists rom around the world.

Our sound recordingindustry could

generate, new jobs

Mining

The potential: The Ring o Fire is one o the most promisingmining opportunities in a generation. It oers signicanteconomic development opportunities or communitiesacross Ontario, and or Aboriginal communities inparticular.

A plan: The area around the Ring o Fire, Ontarios once-in-a-generation mining opportunity, is remote, and lacksthe key inrastructure. Massive investment is needed in

electricity transmission, broadband, and all-weather roads.Addressing crumbling on-reserve inrastructure is anecessity as well.

The potential results: The Ring o Fire has an epectedvalue o about $ billion in minerals and its developmentwill create thousands o jobs in Northern Ontario.

The Ring o Fire has an epectedvalue o about $ billion

CasestUDy


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Manufacturing

The potential: Although Ontario has lost , manuacturing jobs over the last years, its manuacturing sector is on the rebound. In , the sector created ,

new jobs. The sector is vital to the Canadian economy: manuacturing is responsibleor three-quarters o all private sector research and provides percent o the tarevenues paid by businesses to all levels o government in Canada.

A plan: Canadian manuacturers have identied ve priority action items or publicpolicy: ensuring eective government programs and taation; increasing the sizeand skills o the labour pool; strengthening economic integration with the U.S.;supporting market diversication; and easing the regulatory burden. Theconstruction o the Detroit River International Crossing is also a priority. None othese priority items recognize jurisdictional divides. Governments o all levels willneed to coordinate their eorts to revitalize the manuacturing industry.

The potential results: A manuacturing sector ring on all cylinders is vital toOntarios economy. The sectors value is broadthe manuacturing sectorgenerates $. in economic spin-os or every $. in manuacturing output. Avibrant manuacturing sector has the potential to drive innovation andproductivity growth, and boost trade.

Manuacturing is

responsible or three-quarters o all privatesector research in

Canada


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conclusionIn , we set out a transormative agenda or Ontario designed to ensure theprovinces continued prosperity. The agenda outlined ve priorities or Ontario:ostering a culture o innovation; assembling a st century workorce; putting publicnances on a scally sustainable path; diversiying eport markets; and identiying andleveraging new and eisting competitive advantages.

Considerable progress has been made over the past months. Business investment ison the rise. Manuacturing jobs are returning to Ontario. Business, government, and

civic leaders are increasingly singing rom the same song book. The nal report o theprovinces JPC is representative o this coalescence o ideas: it outlinescomplementary objectives to those ound in Emerging Stronger 2012.

But there is still much more to do. The global economic downturn continues to have aproound eect on the province. Unemployment levels remain high, Ontario has lostthousands o manuacturing jobs, and the provinces debt burden is growing.

For Ontario to prosper we must continue to take tangible steps towards advancing theEmerging Strongeragenda.

Ontarians should never lose sight o the act that in spite o our challenges we remainthe envy o the worldand or good reason. Ontario has the highest level o post-secondary credential attainment in the OECD. Its ta environment is dramaticallyimproved. Its manuacturing sector is rebounding. Its Ring o Fire is touted as the mostpromising mining opportunity or Canada in a generation.

More importantly, Ontarios streets are sae, its air and water are clean, and its standardo living is among the highest in the world.

It is vital that all Ontarians understand the tremendous advantages we possess and theshared role we must all play in transorming the provinces economy.


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This report has laid out Ontarios advantages, its weaknesses, and the steps thatOntarians must take collectively to ensure uture sustained prosperity.

Over the net year, the OCC, its network o local chambers and their ,members, the Mowat Centre, and Leger Marketing will take action to support thesenet steps. We invite government, business, civic leaders, and all Ontarians to join us.


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summaRY o RecommendationsFing culu innin ndm ikking ind bcm pducii ld

. Direct and indirect supports or R&D should be coordinated at the provincialand ederal levels.

. Governments need to better coordinate their activities and resources to attractlarge-scale investments in Ontario.

. Foster entrepreneurship in the classroom.

. Make commercialization part o university mandates.

. Leverage public sector procurement to spur innovation.. Establish a crowdunding regime in Ontario.

. Ontario businesses need to invest in the levers o productivity.

. Open up public data.

. Allow colleges to play a bigger role in driving innovation.

. Improve transparency in regulation.

. Address the cumulative regulatory burden on businesses.. Ontario should pursue a simplied ta system.

. Ontario should continue to push or a common Securities Regulator.


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Building

cnu kc

ug kplcining, uiliingncm kill,nd ppnicipm

. The ederal government should implement the recommendations o theMowat Centre EI Task Force.

. Implement the recommendations o Ontarios Epert Roundtable onImmigration.

. Businesses need to take better advantage o eisting opportunities, such as theProvincial Nominee Program, to win the global war or talent.

. Ontario and the ederal government should collaborate in the design andimplementation o an Epression o Interest (EOI) immigration model.

. Ontarios universities and colleges should epand recruitment initiatives aimedat international students.

. Ontario businesses must capitalize on the untapped potential o OntariosAboriginal population.

. The ederal government must close the unding gap or on-reserve Aboriginaleducation.

. Ontario needs to reinvent its employment and training services.

. Employers need to recognize the potential o people with disabilities.

. Ontarios apprenticeship system needs to become more feible.

ring clblnc bimping gnmn k

. The private and not-or-prot sectors should play a bigger role in deliveringpublic services.

. The private and public sectors must do their part to help Ontario get back toscal balance.

. Streamline public sector procurement.

. Close the $. billion gap.

. Tackle the underground economy to increase revenue.

. Develop an asset management ramework.

. Engage Ontarians in a discussion on how we pay or our inrastructure.

. Unleash private capital or public good.


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tking dng n ppunii in glbl cnm

. Ontario needs to develop an eport growth strategy ocused on SMEs.

. Create a one-window access point or businesses seeking eport assistance.

. Ontario must diversiy its trade and leverage its diaspora connections toemerging markets.

. Remove inter-provincial trade barriers.

Idniing,cmpining, ndgicll iningin u cmpiidng in glbl cnm.

. Develop a coherent set o objectives and policies to revitalize Canadasmanuacturing sector.

. Deploy business supports strategically.

. FedDev Ontario should be made permanent and be adequately unded.

. Make the development o the Ring o Fire a priority.

. Aboriginal, government and industry leaders must accelerate dialogue and aimto build constructive partnerships.

. Establish a coordinated approach to energy technology investments.

. The private sector must collaborate in order to ully leverage Ontarioscompetitive advantages.

. Leverage Ontarios innovation advantage.


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acKnoWledgementsSincere thanks to business, government and civic leaders, local chambers andtheir , members, and participants o the Ontario Economic Summit who lenttheir voice to the shaping o this economic vision or Ontario, Emerging Stronger2013.

occ.on.ca | @OntarioCoClegermarketing.com | @legerweb

mowatcentre.ca | @mowatcentre

PHOTO ACKNOWLEDGEMENTS

Page 7, 8, 14 Ryerson University

Page 22 Bombardier

Page 31, 32 Greater Toronto Airport Authority

Page 37, 38 NASA

Page 43 FALLS recording session - Studio A Revolution Recording

Photo Credit Joe Dunphy /Music Canada

Page 43 HLS Hard-Line Solutions Inc.

Page 44 Alcohol Countermeasure Systems Corp.

WE HOPE THAT


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WE HOPE THAT

YOU WILL JOINUS IN MOVING

THIS AGENDA FORWARD

SO THAT ONTARIOCAN EMERGE STRONGER,MORE PRODUCTIVE,

AND MORE GLOBALLYCONNECTED.

Documents

Ontario Canada: Emerging Strong 2013