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For a More Innovative Clean and Inclusive Quebec Economy
STRATEGIC PLAN 2021
STANDING BY BUSINESSES STANDING BY REGIONS
PUBLISHED BY Economic Development Agency of Canada for the Regions of Quebec Montreacuteal Quebec H3B 2T9 wwwdec-cedgcca
copy Her Majesty the Queen in Right of Canada represented by the Minister of the Economic Development Agency of Canada for the Regions of Quebec 2017
Catalogue Iu90-457-2017E-PDF ISBN 978-0-660-07591-4
TABLE OF CONTENTS
Message from the Minister 2
Word from the Deputy Minister President 3
Overview of the plan 4
CEDrsquos role 5
Our environment 7
Our objectives 13
1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs 14
Challenges 14
Opportunities for Quebec 17
Taking action 20
2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy 23
Challenges 24
Opportunities for Quebec 25
Taking action 27
3 Support communities to promote their economic diversification and their participation in an inclusive economy 28
Challenges 28
Opportunities for Quebec 29
Taking action 31
4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation 32
Challenges 32
Opportunities for Quebec 33
Taking action 35
CEDrsquos commitment going forward 36
Conclusion 41
Endnotes 42
2 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Taking this valuable information into consideration while adapting to changing economic and technological condi-tions this Plan aims to help Quebec businesses and com-munities fully participate in the economy of the future It fosters economic growth through innovation clean tech-nologies and an inclusive approach Strategic investments that support transition enhance diversification and build on competitive regional advantages will lead the way towards this renewed vision for the economic development of Quebec regions
As Minister of Innovation Science and Economic Development my overarching goal is to help Canadian businesses grow innovate and export so that they can create good quality jobs and wealth for Canadians I am confident that together by implementing this Plan we will put Quebec businesses and communities on the path to long-term growth
The Honourable Navdeep Singh Bains
Minister of Innovation Science and Economic Development and Minister responsible for Canada Economic Development for Quebec Regions (CED)
MESSAGE FROM THE MINISTER
It is with much enthusiasm that Canada Economic Development for Quebec Regions (CED) presents its Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy In sync with the Government of Canadarsquos prioritiesmdashand more precisely with those of Canadarsquos Innovation Agendamdashthis Plan outlines CEDrsquos strategic directions for the coming years and maps out courses of action to achieve measurable results It is imperative that we align our resources with these priorities and pursue our goals with a strong sense of collaboration in order to attain meaningful results
A collaborative approach means improving synergies not only with other federal bodies but also with the province and municipalities It also means working closely with Indigenous people civil society universities and other stakeholders to support their efforts to innovate and increase productivity CED adopted this approach in the course of its 2016 consultations during which the public and stakeholders expressed their opinions on economic development issues and challenges Quebec regions face today
3STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
office will develop a regional intervention strategy tailored to the needs of its clientele taking into account the regionrsquos socio-economic demographic and geographic features From an inclusive growth perspective the Plan seeks to reduce disparities between the communities and as a result generate more equal opportunities for economic and social development
Whether you are an entrepreneur the head of an economic non-profit organization a government or financial partner or any other economic stakeholder I invite you to take the time to read this Plan and to call upon our services so that together we can build a more innovative and more com-petitive economy in every region of Quebec
Manon Brassard
Manon Brassard
Deputy Minister President ndash Canada Economic Development for Quebec Regions (CED)
WORD FROM THE DEPUTY MINISTER PRESIDENT
Canada Economic Development for Quebec Regions (CED) plays a key role in delivering on the objectives of the Government of Canada which has committed to fostering clean and inclusive growth for our country creating quality jobs in every sector of the economy and ensuring prosperity for all Canadians
I am therefore proud to present our Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy which defines how CED working with its development partners intends to help Quebec businesses and regions rise to the challenges ahead
The Plan sets out our strategic directions and related objec-tives as well as the renewed intervention approach we will be pursuing over the coming years It has been developed and inspired to a considerable degree by the findings of CEDrsquos Engagement Strategy 2016 an innovative initiative that involved a series of consultations on specific themes related to economic development (The results of these consultations are outlined in a Summury Report available at wwwcedgccaCEDialogue)
As you read the Plan you will see that it is aligned with the Government of Canadarsquos priorities to make innovation and science the drivers of our future economic growth in a way that reflects the unique realities of Quebec Its success largely rests on the work of CEDrsquos 12 business offices located across Quebec which not only fund projects but also play a key networking role among the players involved in economic development Each business
CED is taking new measures to reach its targets and help build a more innovative clean and inclusive Quebec economy
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
STANDING BY BUSINESSES STANDING BY REGIONS
PUBLISHED BY Economic Development Agency of Canada for the Regions of Quebec Montreacuteal Quebec H3B 2T9 wwwdec-cedgcca
copy Her Majesty the Queen in Right of Canada represented by the Minister of the Economic Development Agency of Canada for the Regions of Quebec 2017
Catalogue Iu90-457-2017E-PDF ISBN 978-0-660-07591-4
TABLE OF CONTENTS
Message from the Minister 2
Word from the Deputy Minister President 3
Overview of the plan 4
CEDrsquos role 5
Our environment 7
Our objectives 13
1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs 14
Challenges 14
Opportunities for Quebec 17
Taking action 20
2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy 23
Challenges 24
Opportunities for Quebec 25
Taking action 27
3 Support communities to promote their economic diversification and their participation in an inclusive economy 28
Challenges 28
Opportunities for Quebec 29
Taking action 31
4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation 32
Challenges 32
Opportunities for Quebec 33
Taking action 35
CEDrsquos commitment going forward 36
Conclusion 41
Endnotes 42
2 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Taking this valuable information into consideration while adapting to changing economic and technological condi-tions this Plan aims to help Quebec businesses and com-munities fully participate in the economy of the future It fosters economic growth through innovation clean tech-nologies and an inclusive approach Strategic investments that support transition enhance diversification and build on competitive regional advantages will lead the way towards this renewed vision for the economic development of Quebec regions
As Minister of Innovation Science and Economic Development my overarching goal is to help Canadian businesses grow innovate and export so that they can create good quality jobs and wealth for Canadians I am confident that together by implementing this Plan we will put Quebec businesses and communities on the path to long-term growth
The Honourable Navdeep Singh Bains
Minister of Innovation Science and Economic Development and Minister responsible for Canada Economic Development for Quebec Regions (CED)
MESSAGE FROM THE MINISTER
It is with much enthusiasm that Canada Economic Development for Quebec Regions (CED) presents its Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy In sync with the Government of Canadarsquos prioritiesmdashand more precisely with those of Canadarsquos Innovation Agendamdashthis Plan outlines CEDrsquos strategic directions for the coming years and maps out courses of action to achieve measurable results It is imperative that we align our resources with these priorities and pursue our goals with a strong sense of collaboration in order to attain meaningful results
A collaborative approach means improving synergies not only with other federal bodies but also with the province and municipalities It also means working closely with Indigenous people civil society universities and other stakeholders to support their efforts to innovate and increase productivity CED adopted this approach in the course of its 2016 consultations during which the public and stakeholders expressed their opinions on economic development issues and challenges Quebec regions face today
3STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
office will develop a regional intervention strategy tailored to the needs of its clientele taking into account the regionrsquos socio-economic demographic and geographic features From an inclusive growth perspective the Plan seeks to reduce disparities between the communities and as a result generate more equal opportunities for economic and social development
Whether you are an entrepreneur the head of an economic non-profit organization a government or financial partner or any other economic stakeholder I invite you to take the time to read this Plan and to call upon our services so that together we can build a more innovative and more com-petitive economy in every region of Quebec
Manon Brassard
Manon Brassard
Deputy Minister President ndash Canada Economic Development for Quebec Regions (CED)
WORD FROM THE DEPUTY MINISTER PRESIDENT
Canada Economic Development for Quebec Regions (CED) plays a key role in delivering on the objectives of the Government of Canada which has committed to fostering clean and inclusive growth for our country creating quality jobs in every sector of the economy and ensuring prosperity for all Canadians
I am therefore proud to present our Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy which defines how CED working with its development partners intends to help Quebec businesses and regions rise to the challenges ahead
The Plan sets out our strategic directions and related objec-tives as well as the renewed intervention approach we will be pursuing over the coming years It has been developed and inspired to a considerable degree by the findings of CEDrsquos Engagement Strategy 2016 an innovative initiative that involved a series of consultations on specific themes related to economic development (The results of these consultations are outlined in a Summury Report available at wwwcedgccaCEDialogue)
As you read the Plan you will see that it is aligned with the Government of Canadarsquos priorities to make innovation and science the drivers of our future economic growth in a way that reflects the unique realities of Quebec Its success largely rests on the work of CEDrsquos 12 business offices located across Quebec which not only fund projects but also play a key networking role among the players involved in economic development Each business
CED is taking new measures to reach its targets and help build a more innovative clean and inclusive Quebec economy
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
TABLE OF CONTENTS
Message from the Minister 2
Word from the Deputy Minister President 3
Overview of the plan 4
CEDrsquos role 5
Our environment 7
Our objectives 13
1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs 14
Challenges 14
Opportunities for Quebec 17
Taking action 20
2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy 23
Challenges 24
Opportunities for Quebec 25
Taking action 27
3 Support communities to promote their economic diversification and their participation in an inclusive economy 28
Challenges 28
Opportunities for Quebec 29
Taking action 31
4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation 32
Challenges 32
Opportunities for Quebec 33
Taking action 35
CEDrsquos commitment going forward 36
Conclusion 41
Endnotes 42
2 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Taking this valuable information into consideration while adapting to changing economic and technological condi-tions this Plan aims to help Quebec businesses and com-munities fully participate in the economy of the future It fosters economic growth through innovation clean tech-nologies and an inclusive approach Strategic investments that support transition enhance diversification and build on competitive regional advantages will lead the way towards this renewed vision for the economic development of Quebec regions
As Minister of Innovation Science and Economic Development my overarching goal is to help Canadian businesses grow innovate and export so that they can create good quality jobs and wealth for Canadians I am confident that together by implementing this Plan we will put Quebec businesses and communities on the path to long-term growth
The Honourable Navdeep Singh Bains
Minister of Innovation Science and Economic Development and Minister responsible for Canada Economic Development for Quebec Regions (CED)
MESSAGE FROM THE MINISTER
It is with much enthusiasm that Canada Economic Development for Quebec Regions (CED) presents its Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy In sync with the Government of Canadarsquos prioritiesmdashand more precisely with those of Canadarsquos Innovation Agendamdashthis Plan outlines CEDrsquos strategic directions for the coming years and maps out courses of action to achieve measurable results It is imperative that we align our resources with these priorities and pursue our goals with a strong sense of collaboration in order to attain meaningful results
A collaborative approach means improving synergies not only with other federal bodies but also with the province and municipalities It also means working closely with Indigenous people civil society universities and other stakeholders to support their efforts to innovate and increase productivity CED adopted this approach in the course of its 2016 consultations during which the public and stakeholders expressed their opinions on economic development issues and challenges Quebec regions face today
3STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
office will develop a regional intervention strategy tailored to the needs of its clientele taking into account the regionrsquos socio-economic demographic and geographic features From an inclusive growth perspective the Plan seeks to reduce disparities between the communities and as a result generate more equal opportunities for economic and social development
Whether you are an entrepreneur the head of an economic non-profit organization a government or financial partner or any other economic stakeholder I invite you to take the time to read this Plan and to call upon our services so that together we can build a more innovative and more com-petitive economy in every region of Quebec
Manon Brassard
Manon Brassard
Deputy Minister President ndash Canada Economic Development for Quebec Regions (CED)
WORD FROM THE DEPUTY MINISTER PRESIDENT
Canada Economic Development for Quebec Regions (CED) plays a key role in delivering on the objectives of the Government of Canada which has committed to fostering clean and inclusive growth for our country creating quality jobs in every sector of the economy and ensuring prosperity for all Canadians
I am therefore proud to present our Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy which defines how CED working with its development partners intends to help Quebec businesses and regions rise to the challenges ahead
The Plan sets out our strategic directions and related objec-tives as well as the renewed intervention approach we will be pursuing over the coming years It has been developed and inspired to a considerable degree by the findings of CEDrsquos Engagement Strategy 2016 an innovative initiative that involved a series of consultations on specific themes related to economic development (The results of these consultations are outlined in a Summury Report available at wwwcedgccaCEDialogue)
As you read the Plan you will see that it is aligned with the Government of Canadarsquos priorities to make innovation and science the drivers of our future economic growth in a way that reflects the unique realities of Quebec Its success largely rests on the work of CEDrsquos 12 business offices located across Quebec which not only fund projects but also play a key networking role among the players involved in economic development Each business
CED is taking new measures to reach its targets and help build a more innovative clean and inclusive Quebec economy
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
2 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Taking this valuable information into consideration while adapting to changing economic and technological condi-tions this Plan aims to help Quebec businesses and com-munities fully participate in the economy of the future It fosters economic growth through innovation clean tech-nologies and an inclusive approach Strategic investments that support transition enhance diversification and build on competitive regional advantages will lead the way towards this renewed vision for the economic development of Quebec regions
As Minister of Innovation Science and Economic Development my overarching goal is to help Canadian businesses grow innovate and export so that they can create good quality jobs and wealth for Canadians I am confident that together by implementing this Plan we will put Quebec businesses and communities on the path to long-term growth
The Honourable Navdeep Singh Bains
Minister of Innovation Science and Economic Development and Minister responsible for Canada Economic Development for Quebec Regions (CED)
MESSAGE FROM THE MINISTER
It is with much enthusiasm that Canada Economic Development for Quebec Regions (CED) presents its Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy In sync with the Government of Canadarsquos prioritiesmdashand more precisely with those of Canadarsquos Innovation Agendamdashthis Plan outlines CEDrsquos strategic directions for the coming years and maps out courses of action to achieve measurable results It is imperative that we align our resources with these priorities and pursue our goals with a strong sense of collaboration in order to attain meaningful results
A collaborative approach means improving synergies not only with other federal bodies but also with the province and municipalities It also means working closely with Indigenous people civil society universities and other stakeholders to support their efforts to innovate and increase productivity CED adopted this approach in the course of its 2016 consultations during which the public and stakeholders expressed their opinions on economic development issues and challenges Quebec regions face today
3STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
office will develop a regional intervention strategy tailored to the needs of its clientele taking into account the regionrsquos socio-economic demographic and geographic features From an inclusive growth perspective the Plan seeks to reduce disparities between the communities and as a result generate more equal opportunities for economic and social development
Whether you are an entrepreneur the head of an economic non-profit organization a government or financial partner or any other economic stakeholder I invite you to take the time to read this Plan and to call upon our services so that together we can build a more innovative and more com-petitive economy in every region of Quebec
Manon Brassard
Manon Brassard
Deputy Minister President ndash Canada Economic Development for Quebec Regions (CED)
WORD FROM THE DEPUTY MINISTER PRESIDENT
Canada Economic Development for Quebec Regions (CED) plays a key role in delivering on the objectives of the Government of Canada which has committed to fostering clean and inclusive growth for our country creating quality jobs in every sector of the economy and ensuring prosperity for all Canadians
I am therefore proud to present our Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy which defines how CED working with its development partners intends to help Quebec businesses and regions rise to the challenges ahead
The Plan sets out our strategic directions and related objec-tives as well as the renewed intervention approach we will be pursuing over the coming years It has been developed and inspired to a considerable degree by the findings of CEDrsquos Engagement Strategy 2016 an innovative initiative that involved a series of consultations on specific themes related to economic development (The results of these consultations are outlined in a Summury Report available at wwwcedgccaCEDialogue)
As you read the Plan you will see that it is aligned with the Government of Canadarsquos priorities to make innovation and science the drivers of our future economic growth in a way that reflects the unique realities of Quebec Its success largely rests on the work of CEDrsquos 12 business offices located across Quebec which not only fund projects but also play a key networking role among the players involved in economic development Each business
CED is taking new measures to reach its targets and help build a more innovative clean and inclusive Quebec economy
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
3STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
office will develop a regional intervention strategy tailored to the needs of its clientele taking into account the regionrsquos socio-economic demographic and geographic features From an inclusive growth perspective the Plan seeks to reduce disparities between the communities and as a result generate more equal opportunities for economic and social development
Whether you are an entrepreneur the head of an economic non-profit organization a government or financial partner or any other economic stakeholder I invite you to take the time to read this Plan and to call upon our services so that together we can build a more innovative and more com-petitive economy in every region of Quebec
Manon Brassard
Manon Brassard
Deputy Minister President ndash Canada Economic Development for Quebec Regions (CED)
WORD FROM THE DEPUTY MINISTER PRESIDENT
Canada Economic Development for Quebec Regions (CED) plays a key role in delivering on the objectives of the Government of Canada which has committed to fostering clean and inclusive growth for our country creating quality jobs in every sector of the economy and ensuring prosperity for all Canadians
I am therefore proud to present our Strategic Plan 2021 For a More Innovative Clean and Inclusive Quebec Economy which defines how CED working with its development partners intends to help Quebec businesses and regions rise to the challenges ahead
The Plan sets out our strategic directions and related objec-tives as well as the renewed intervention approach we will be pursuing over the coming years It has been developed and inspired to a considerable degree by the findings of CEDrsquos Engagement Strategy 2016 an innovative initiative that involved a series of consultations on specific themes related to economic development (The results of these consultations are outlined in a Summury Report available at wwwcedgccaCEDialogue)
As you read the Plan you will see that it is aligned with the Government of Canadarsquos priorities to make innovation and science the drivers of our future economic growth in a way that reflects the unique realities of Quebec Its success largely rests on the work of CEDrsquos 12 business offices located across Quebec which not only fund projects but also play a key networking role among the players involved in economic development Each business
CED is taking new measures to reach its targets and help build a more innovative clean and inclusive Quebec economy
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
4 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Objectives
Regional Intervention Strategies
Projects Supported by CED
A More Innovative Clean and Inclusive Quebec EconomyIMPACT
OVERVIEW OF THE PLAN
Our visionTo be the key federal actor in the economic development of the regions of Quebec so that all Quebec regions and enterprises participate to their full potential in the economy of tomorrow while building on their assets
Our commitmentAn adapted collaborative results-based inclusive and simplified approach
Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Support growing and innova-tive businesses to foster a robust economy and generate high-quality jobs
Foster the participation of Indigenous peoples contrib-uting to the economic growth of Quebec by encouraging entrepreneurship and social innovation
Support communities to promote their economic diversification and their participation in an inclusive economy
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
5STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Our mission CEDrsquos mission is to promote the long-term economic development of the regions of Quebec by giving special attention to those where slow economic growth is preva-lent or opportunities for productive employment are inadequate In pursuit of this mission CED supports
CEDrsquoS ROLE
Canada Economic Development for Quebec Regions (CED) is among the federal departments and agencies that make up the Innovation Science and Economic Development Canada (ISEDC) portfolio CED is also one of Canadarsquos five regional economic development agencies offering programs and services tailored to each region and providing a regional strategic perspective that supports national priorities
CED strives to further the Government of Canadarsquos objectives of promoting innovation creating quality jobs and fostering growth in all regions of the country CED does this by building on collaboration and creating synergies with communities other levels of government the research sector and local stakeholders
1 Entrepreneurship and business performance
CED helps enterprises get started and become more innovative productive and competitive at the regional national and international levels
2 Development and promotion of regional strenths
CED promotes the mobilization of economic stakeholders and attraction of investment to help each region overcome challenges and become more prosperous (eg Community Futures Program (CFP) Economic Recovery Initiative for Lac-Meacutegantic)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
6 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Internal data from CED (2012ndash2016) August 2016 consultations
OUR RESULTS FOR 2012ndash2016
The projects funded by CED contributed to among other things rsaquo the renewal of Quebecrsquos
business pool with 158 new business start-up projects
rsaquo the arrival of more than 25 million tourists from outside Quebec in the province (who spent over $14 billion)
rsaquo gross domestic product (GDP) growth in 16 of the 17 administrative regions in Quebec (2011ndash2014)
rsaquo the retention or attraction of 200 international organi-zations and foreign enter-prises and the injection of $5 billion in international direct investment
rsaquo the development of commu-nity economic facilities in the regions through invest-ments totalling more than $40 million
An analysis of CEDrsquos investments suggests ways to increase the impact of our efforts including
bull increasing support for innovation by helping businesses at every stage of development
bull supporting business productivity by encouraging the transition to digital technologies
bull assisting communities with low economic potential including Indigenous communities and those with limited competitive advan-tages through more flexible and adapted measures
bull providing increased support for growth-generating projects that have a positive impact in more than one region (inter-regional projects)
99
98
72
88
Thus
of the businesses supported by CED were still in operation three years after project completion
of the firms directly funded by CED recorded sales growth
of the businesses supported by CED maintained or increased the size of their workforce
of the projects funded by CED could not have been carried out to the same extent without this support
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
7STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR ENVIRONMENT
A fast- and ever-changing global economy Global competition continues to intensify with the rise of emerging economies the increase in technology penetration globalization and the growing importance of global value chains Moreover the convergence of environmental financial and energy challenges will have an impact on the development of many regions of the world This new dynamic could prompt some countries to adjust their approach to international trade the environment and security
In its Global Risks Report 2016 the World Economic Forum identifies a number of trends likely to affect the global economy including
bull the aging population
bull the growth of the middle class in emerging economies
bull climate change
bull the rise in geographic mobility
bull urbanization
The report also pinpoints various risks that could hinder or halt development notably
Source World Economic Forum The Global Risks Report 2016
Economic risks Financial bubbles structural unemployment illegal trade energy price shocks
Environmental risks Extreme weather events natural catastrophes climate change
Geopolitical risks Governance problems corruption conflicts
Societal risks Food crises water crises mass migration social instability
Technological risks Adverse consequences of technological advances infrastructure and network breakdowns large-scale cyberattacks data fraud or theft
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
8 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
A promising yet uneven outlook for Quebec regions
The Quebec economy in numbers123
Population (2016)
or 23 of the population of Canada
83million inhabitants
GDP (2015)
or 192 of the Canadian gross domestic product (GDP)
381billion dollars
Employment (2015)
or 228 of employment in Canada
41million workers
Export of goods and services (2014)
or 164 of Canadian exports
1025billion dollars
Research and development (2013)
262of Canadian research and development (RampD) spending 556 ($47 billion) of which is for industrial RampD
The World Economic Forum and international institutions such as the Organisation for Economic Co-operation and Development (OECD) are stress-ing the importance of guarding against these risks To do so regions will have to find ways of becom-ing more resilient and businesses will need to take steps to better protect their data and intellectual property It will be incumbent on economic stake-holders to keep close watch over the situation in order to adjust to such changes and seize the opportunities arising from technological advances
and the digital movement Digital technology is the driving force underlying what is being called the Fourth Industrial Revolution owing to its potential to transform societies and their ways of doing things The growing geographic mobility of workers gives businesses access to a diversified pool of skilled labour For cities this expanding urbanization means more opportunities for partnership with other levels of government and the private sector
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
9STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Regional economic dynamics
There are various ways of classifying Quebecrsquos regional economies CED builds on the classification system used by the Government of Quebec which distinguishes resource-based economies from manufacturing and urban economies4
Resource-based economies
rsaquo Centred on natural resource extraction
rsaquo Sensitive to economic cycles
rsaquo Need to diversify their economies and transform resources into high value-added products and services
Manufacturing economies
rsaquo Possess significant economic weight
rsaquo Affected by stronger global competition and the expansion of global value chains
rsaquo Need to innovate and strengthen their competitiveness
Urban economies rsaquo Oriented toward services including value-added services
rsaquo Play a key role in innovation owing to the presence of world-class industrial clusters and business ecosystems that are fertile ground for innovative enterprises
rsaquo Need to innovate and to harness opportunities in big data mining to become ldquosmart citiesrdquo
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
10 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenges for the Quebec economy
Regional disparities
rsaquo Regions do not share the same characteristics or economic development potential For example for the period of 2011 to 2036 the Institut de la statistique du Queacutebec (ISQ) projects demographic growth of more than 30 in Laval and negative growth of nearly 4 in Gaspeacutesie5
rsaquo Basic requirements must be present for regions to develop They need quality Internet access the ability to rely on a skilled and competent workforce and the capacity to carry out long-term planning
rsaquo Economic stakeholders must evaluate local and regional issues challenges opportunities and assets on an ongoing basis in order to provide adapted place-based support
Aging population rsaquo In 2011 157 of Quebecers were over the age of 65 by 2036 that number will have risen to 2596
Entrepreneurship and succession
rsaquo 591 of small and medium enterprise (SME) owners were over the age of 50 in 20117
rsaquo Only 175 of Quebecers looking to go into business consider taking over or buying an existing company8
rsaquo 30 of business owners who plan to retire within the next 10 years intend to close rather than find a buyer for their company9
Productivity growth
rsaquo In 2015 the hourly productivity of Quebecrsquos business sector ($4410) was below the Canadian average ($4990)10
rsaquo Still in 2015 the hourly productivity of Quebecrsquos business sector was $270 lower than that of Ontario ($4680)11
rsaquo From 1999 to 2015 productivity in Quebec grew by 122 six percentage points lower than in Canada as a whole12
Innovation rsaquo Between 2010 and 2012 in general 61 of Quebec companies innovated down from 77 from 2007 to 200913
rsaquo Between 2010 and 2012 493 of Ontario enterprises engaged in product innovation compared with only 277 in Quebec14
Internationalization of markets
rsaquo The low Canadian dollar is raising the cost of imported parts used in the manufacturing of Quebec products and discouraging the acquisition of equipment from the United States
rsaquo The rising tide of protectionism in the United States and Europe is creating a climate of uncertainty for Quebec exporters
rsaquo Competition in Quebecrsquos export markets is increasing with the arrival of actors with lower production costs
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
11STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Strengths of the Quebec economy
Educated and skilled workforce
rsaquo In 2015 68 of Quebecers between the ages of 25 and 64 had a post-secondary diploma which is higher than the average for Canada (67) and the OECD countries (40)15
rsaquo Montreacuteal has the highest concentration of high-technology jobs in the country16
Abundant natural resources
rsaquo Quebec is the worldrsquos 4th biggest producer of hydroelectric power17
rsaquo Its forest industry generates $166 billion in sales and employs over 60000 people18
rsaquo Its mining industry ships over $7 billion worth of minerals annually19
Vibrant high-technology clusters
rsaquo Quebec has 39 industrial clusters20
rsaquo The province is the lead player in Canadarsquos aerospace industry with more than 41750 jobs 55 of the sales and 70 of the RampD spending21
rsaquo In Quebec 196000 people specialize in the field of information and communications technology (ICT)22
rsaquo The provincersquos life sciences cluster employs over 25390 people in 457 enterprises23
rsaquo Quebec companies are offering increasingly specialized products and services
Dynamic research infrastructure
rsaquo Quebec has 18 universities24 and 49 college technology transfer centres (CCTT)25 working on applied research in a variety of fields
rsaquo Intramural RampD spending in Quebec accounted for 232 of the provincersquos GDP (2013) close to the OECD average26
Access to numerous markets
rsaquo Quebec enjoys a prime geographic position close to North American and European markets
rsaquo 115 million consumers live within 1000 km27 of Greater Montreacuteal
rsaquo The North American Free Trade Agreement (NAFTA) gives Quebec exporters prime access to a dynamic market of 460 million inhabitants28
rsaquo The Comprehensive Economic and Trade Agreement (CETA) with the European Union will provide new business opportunities for Quebec firms
High quality of life rsaquo According to the OECDrsquos Regional Well-Being Index Quebec ranks favourably in relation to other regions of the world in the areas of education health and housing29
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
12 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Growth opportunities for Quebec
Barring a resurgence of US protectionism Quebec is expected to remain on the path to modest recovery for the next few years while continuing to benefit from both the economic upturn in the US and the low Canadian dollar The higher demand for Quebec products and services should lead to increased business reinvestment
Governance and inclusive growth
Major changes are under way in local and regional eco-nomic development governance in Quebec In 2015 the Government of Quebec implemented new legislation to decentralize decision-making processes giving municipal-ities greater autonomy The regional county municipalities (RCMs) are now officially responsible for local and regional economic development30 Adjustments will therefore have to be made to our practices and collaborations in the years
ahead CED will be strengthening existing partnerships and forging new ones so that it can continue to help Quebecrsquos businesses and regions harness new opportunities for development and growth
Quebec can also build on its competitive advantages and leverage opportunities for economic growth provided it does so in respect of the environment and in a way that promotes inclusion of the various groups that make up its population Indeed the OECD31 recently indicated that going forward Canada will have to mobilize all available sources of labour including its Indigenous populations if it is to overcome the challenges of an aging workforce The Government of Canadarsquos objective to promote stron-ger more inclusive growth should serve as a reference in addressing these major challenges facing Quebecrsquos businesses and communities
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
13STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
OUR OBJECTIVES
CED will continue supporting Quebec businesses and regions to promote their long-term economic development The Quebec Economic Development Programmdashdesigned to foster business growth economic development of the regions and stronger local economiesmdashwill be the main tool used to fulfil this mission
CED will support the development of a more innovative clean and inclusive economy by targeting four objectives aligned with several of the outcomes sought by the Government of Canada CEDrsquos interventions are set out in the Regional Intervention Strategies which detail how each business office plans to meet CEDrsquos priorities based on regional strengths
Objective 1 Support growing and innovative businesses to foster a robust economy and generate high-quality jobs
Objective 2 Support businesses and regions that develop and adopt new technologies participating in a clean-growth economy
Objective 3 Support communities to promote their economic diversification and their participation in an inclusive economy
Objective 4 Foster the participation of Indigenous peoples contributing to the economic growth of Quebec by encouraging entrepreneurship and social innovation
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
14 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
1 SUPPORT GROWING AND INNOVATIVE BUSINESSES TO FOSTER A ROBUST ECONOMY AND GENERATE HIGH-QUALITY JOBS
Challenges of innovationa
Quebec businesses have to innovate in order to grow and stay competitive Investing in innovation helps enterprises not only raise their productivity33 but also boost their com-mercial potential
To harness this renewed commercial potential innovative businesses must develop commercialization and export capabilities They have to be able to adopt new business models and integrate into global value chains To meet these challenges they must build new organizational capabilities continuously innovate and make ever better use of digital technologies
Going digital forces businesses to change how they work and how they design market distribute deliver and get paid for their products and services Making these adjustments requires new skills and expertise all the while building a culture of innovation and experimentation that allows for the emergence of new practices
Challenge 1 Start-up of innovative businesses
Overall entrepreneurial activity is very dynamic in Quebec The province compares favourably with G8 countries in terms of the proportion of entrepreneurs in the total population right behind the United States and the rest of Canada34 Quebec also stands out for the growing number of individuals who want to start a business There are also more individuals who take action that is one out of ten people However the main obstacle to starting a business in Quebec is the lack of funding35 particularly for innova-tive projects that require greater risk taking
0
5
10
15
20
Rest of Canada
Quebec
Business ownersEntrepreneurial intentions
Entrepreneurial activity among 18ndash64 year-olds in 2015
52 56
15
181
Source Reacuteseau M 2016
a Innovation includes the development of a new or significantly improved product (good or service) or process a new technology a new marketing method (including the commercialization of an innovation) or a new organizational method in business practices This also includes productivity and expansion projects when related to an innovative product or service in which enterprises make RampD investments
ldquoInnovative economies are more productive more resilient more adaptable to change and better able to support higher living standards32rdquo
ndash OECD
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
15STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Investing in ICT allows the necessary infrastructure to be put in place to foster the sharing of ideas and data as well as the development commercialization and promotion of innovative products and services Participants of the consultations carried out as part of CEDrsquos Engagement Strategy identified the delay in adopting technologies particularly those that enable e-commerce as a key chal-lenge This delay can be explained by a number of factors including a lack of information on the benefits of adopting these technologies insufficient resources for training a skilled workforce and a shortage of capital for the purchase of the equipment and services required They also noted the benefits of enhancing Quebecrsquos culture of innovation and the need for businesses to better identify their ICT requirements
Now more than ever Quebecrsquos businesses cities and regions must be primed and ready to innovate in order to adapt and fully prosper from new technologies And they must have the tools to protect their data from IT threats such as cyberattacks In fact the growth of e-commerce has turned information security into a fundamental issue for productivity and competitiveness
The economic stakeholders consulted as part of CEDrsquos Engagement Strategy 2016 pointed to the insufficient funding for business creation and start-up as well as for the pre-commercialization of products and services A key difficulty is being able to find and secure the neces-sary fundingmdashbe it from the public sector or from private sources This issue is further compounded by the fact that a large portion of the assets of an innovative business is typically tied up in RampD activities and the inherent risks are generally higher than for other types of businesses Stakeholders noted that this problem is especially acute outside the urban economic centres and urged CED to be more proactive in this regard Some participants also suggested that the entrepreneurial culture in Quebec is not being sufficiently promoted and that entrepreneurship in general is not given enough visibility
Challenge 2 Adoption of digital information technologies
Innovation goes hand in hand with the digital shift and big data mining It is a recognized fact that technological innovations make businesses more competitive
These innovations can become a strategic magnet for the regions Unfortunately Canada and Quebec are lagging in ICT investments and businesses are behind in adopting these tools37 Today just half of Canadian enterprises mdashSMEs in particularmdashhave enabled mobile solutions across their entire workforce38
Use of the Internet for example has led to a 10 increase in productivity for SMEs and those using Web technologies are exporting and growing twice as fast as other SMEs36 ndash Centre facilitating research and innovation
in organizations (CEFRIO)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
16 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Efficient innovation management
According to the OECD the productivity gap between Canada and the United States is due in part to the lower level of managerial commercialization and organization skills on this side of the border39
This observation also applies when it comes to managing innovation The Conference Board of Canada found that the main challenge Canadian business owners face in terms of innovation is their lack of the skills needed to ensure its effective management particularly in the areas of plan-ning and assessment41 The stakeholders CED consulted confirmed this finding noting that SMEs have a hard time carrying out long-range planning adversely effecting their competitiveness and their ability to commercialize their innovations
Challenge 4 Commercialization of innovation
Expanding Quebecrsquos offer of innovative products and services should help the provincersquos enterprises better inte-grate global supply chains and become more internationally competitive In a context where 71 of the total value of Quebec exports is with the United States42 diversifying Quebecrsquos export markets may help mitigate some of the impact of fluctuations in the exchange rate and of possible American protectionist policies
However participants of the consultations stressed that Quebec businesses are ill-equipped to go global to export and to integrate into global supply chains It was also men-tioned that these enterprises have difficulty commercializing their innovations
Evidence confirms that while Quebec is indeed innovating its efforts are not sufficiently generating results notably because products and services are not being commercial-ized to the extent that they should owing in part to a lack of resources and skills43
The innovation capacity of SMEs hinges largely on their ability to commercialize their products and services44
ndash Institut de recherche sur les PME Universiteacute du Queacutebec agrave Trois-Riviegraveres (UQTR)
ldquoThe comparatively low managerial skill set impedes Canadarsquos ability to compete in fast-paced knowledge-driven economies and to adequately meet the needs of dynamic markets40rdquo
ndash Council of Canadian Academics
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
17STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 5 Growth of innovative businesses
Rapid growth has a cost An enterprisersquos capacity to grow depends largely on its access to capital and to the guidance it receives during the planning stage While this applies to innovative businesses their case is somewhat different in that many of them experience rapid expansion These enterprises need to be given special attention in view of the major economic spinoffs they generate
Whereas most business support programs in Canada are intended for SMEs very few are specifically dedicated to accelerated-growth enterprises The participants CED consulted underscored the funding problems these busi-nesses face when they are looking to expand
Opportunities for QuebecQuebec has several strengths that favour business inno-vation one of them being a post-secondary educated and creative labour force The province has the highest ratio of RampD researchers in Canada with 102 per 1000 people employed It also has a diversified economy that includes no fewer than 39 industrial clusters operating a range of sectors46 such as aerospace ICT agriculture mining and financial services The presence of established clusters and innovation ecosystems facilitates alliances among busi-nesses while helping them attract international investment become more competitive on global markets and integrate into global value chains
In CEDrsquos consultations stakeholders stressed the impor-tance of leveraging the organizations that specialize in innovation support in Quebec and of fostering collabora-tion For example there are numerous actors promoting technological innovation in the manufacturing sector and Quebec possesses a vast network of college technology transfer centres across the province There are also several federal players on the ground working to stimulate Quebec innovation including the National Research Council and the Business Development Bank of Canada (BDC)
Many other organizations such as the network of regional export promotion organizations (ORPEX) provide services to businesses in the area of innovation commercialization and export Some government stakeholders are also active in this regard including Global Affairs Canada with its trade missions and CanExport program the BDC and the Government of Quebec (Ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation-Export Queacutebec)
With regard to market development Quebecrsquos strategic geographic location offers countless benefits including proximity to the US market maritime access to Europe and new opportunities to explore in Asia These advantages should be further optimized to better position Quebec and its businesses especially with the coming into force of CETA with the European Union Quebec also offers a favourable climate and power rates for the establishment of data hosting companies
The province benefits as well from the presence of numerous incubators and accelerators dedicated to busi-ness start-ups and from the existence of various programs and tools designed to help enterprises transition to digital (eg the SME 20 program and CEFRIOrsquos PME numeacuterique)
New high-growth innovative firms are responsible for nearly half of the total employment gains45
ndash OECD
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
18 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Ecosystem rsaquo Growing ICT industry
rsaquo Dynamic big data ecosystem
rsaquo High data hosting capacity
rsaquo Highly specialized research expertise 1000 scientists with complementary areas of expertise
rsaquo Main application areas of big data account for 40 of GDP
rsaquo Level of data security among the highest in the world
Workforce rsaquo At least 2100 big data specialists
rsaquo A deep pool of 105000 professionals in fields related to big data
rsaquo More than 16000 university students enrolled in programs related to big data
rsaquo Unique cultural diversity and language skills
Cost benefit rsaquo Operating costs 25 lower than in the United States
rsaquo Power rates and a tax burden that are among the lowest in North America
rsaquo Highly competitive incentives (RampD tax credits tax credit for the development of e-business [TCEB] etc)
Quality of life rsaquo Second in North America for quality of life
rsaquo Lowest homicide rate in North America
rsaquo Purchasing power among the worldrsquos highest
Along with the shift to digital the high concentration of expertise in such fields as ICT will help Quebec carve out a place for itself in evolving niches like
ldquocyber resiliencerdquo a term that refers to the ability of businesses and organizations to make the transition to digital while safeguarding against cyberattacks With the global cyber security market expected to grow by 98 per year between now and 2020 this will mean interesting business opportunities for Quebec enterprises47
Lastly with respect to ICT Montreacuteal Internationalrsquos Profile of the Big Data Industry in Quebec (February 2016) a study conducted in conjunction with Queacutebec International highlights the provincersquos key strengths for industry development48
Through the Government of Quebecrsquos Plan drsquoaction en eacuteconomie numeacuterique $188M will be invested over five years
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
19STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants to the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Innovationbull Promote the development of innovation manage-
ment skills within businesses
bull Leverage existing organizations to support business innovation (tools and funding)
bull Promote exchanges between universitiesresearch centres and businesses (eg networking activities creation of a portal)
bull Fund technology showcases
bull Raise awareness among businesses about the importance of innovating and develop a long-term innovation strategy
bull Organize networking activities
bull Raise risk tolerance in direct funding to SMEs
Innovative start-ups and growth enterprisesbull Raise public awareness about the importance
of entrepreneurship (promotion) and guide entrepreneurs through the process (incubators accelerators)
bull Support business start-up (accelerators)
bull Make a consultancy program available to SMEs
bull Make funds available to enterprises for major business projects expansion and growth
Commercialization and global positioning of businessesbull Accompany enterprises in their internationalization
projects and support the development of the skills needed for their successful implementation
bull Set up a platform to facilitate understanding of and access to existing programs and services
bull Promote the tools already in place to support inno-vation and export
bull Facilitate access to market studies and solutions supporting the commercialization of innovations
Digital transitionbull Support the development of digital skills within
businesses (technical support)
bull Support business networking in partnership with local stakeholders (eg boards of trade) to bring about a change of organizational culture
bull Promote new business ecosystems centred on digital technologies and the Internet of Things
bull Provide digital support for SMEs
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
20 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
ACTION 1 Support the start-up and growth of innovative businesses
Courses of actionMaintain support for business incubators and accel-erators and industry clusters to promote the start-up and growth of innovative businesses
In response to challenges
In partnership with key governmental stakeholders help businesses in the start-up and growth phases to innovate (notably to build on their productivity and carry out projects to bridge the gap between tech-nology and market)
In response to challenges
Coordinate federal support measures for accelerated- growth enterprises in Quebec in partnership with other federal stakeholders such as Export Development Canada (EDC) BDC and ISEDC and in alignment with the initiative announced in Budget 201649
In response to challenge
Adapt the current approach to funding to support innovative high-risk projects by start-up and growth enterprises (eg reviewing funding mechanisms and granting conditionally repayable contributions)
In response to challenges
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
21STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Courses of actionProvide more coaching and guidance for innovative firms to help them build their capacity to commer-cialize particularly through the acquisition of skills in such areas as long-term planning in order to be well positioned on domestic and international markets
In response to challenges
Maintain support for projects that help businesses secure the certifications and approvals needed for their products and services to meet international standards
In response to challenge
Work closely with advisors in Global Affairs Canadarsquos Trade Commissioner Service to provide import and export firms with guidance and tools to improve their competitiveness
In response to challenge
Study the feasibility of implementing a strategy to promote the integration of Quebec SMEs in global value chains
In response to challenge
Intensify efforts to implement the federal Industrial and Technological Benefits (ITB) policy in Quebec to help SMEs better position themselves with large prime contractors and integrate into their value chains
In response to challenges
Increase promotion (via the Web and social media) of the Build in Canada Innovation Program (BCIP) a pro-gram through which the federal government supports businesses by purchasing and testing their innovative products and services
In response to challenge
ACTION 2 Support the commercialization and global positioning of businesses
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
22 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ACTION 3 Support the digital transition of CED-supported businesses
Pistes drsquointerventionPartner with stakeholders to support projects aimed at boosting the digital capabilities of enterprises par-ticularly in the manufacturing sector More specifically CED could support development of
rsaquo the capacity of businesses to optimize use of their digital assets and review their processes
rsaquo the skills that businesses need to implement a digital plan and adopt technology solutions that meet their needs
In response to challenges
Make businesses more aware of the importance of leveraging and protecting their data and help them acquire the tools they need to reach their objectives (eg big data analysis software and information security products)
In response to challenge
Provide increased support for innovative firms devel-oping digital technologies so as to promote their emergence and growth (eg through direct financial assistance to businesses or the funding of business incubators and accelerators)
In response to challenges
Indicators Targets
Number of new growth firm projects with an ldquoinnovationrdquo component
500 business projects over 5 years (2021)
Number of new NPO projects with an ldquoinnovationrdquo component
100 NPO projects over 5 years (2021)
Implementation of the ldquoAccelerated Growth Servicerdquo initiative
Fall 2016
Number of clients registered for the ldquoAccelerated Growth Servicerdquo initiative
200 clients over 4 years (31032020) (25 clients by March 31 2017)
Legend of challenges Start-up of innovative businesses Adoption of digital information technologies Efficient innovation management Commercialization of innovation Growth of innovative businesses
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
23STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Climate change is one of the biggest challenges facing all countries of the world Globally efforts are being stepped up to prevent these changes from adversely affecting human activity including the economy In December 2015 the Paris Agreement on climate change was signed by over 190 countries among them Canada which committed to reducing its greenhouse gas emissions by 30 (from 2005 levels) by the year 2030
Countries that lead in this area will be well positioned for the economy of tomorrow notably in terms of competitiveness
2 SUPPORT BUSINESSES AND REGIONS THAT DEVELOP AND ADOPT NEW TECHNOLOGIES PARTICIPATING IN A CLEAN-GROWTH ECONOMY
This objective also serves to further Objective 1 Support growing and innovation businesses to foster a robust economy and generate high-quality jobs and involves promoting the clean growth of Quebec businesses and regions
Exports
RampD
Jobs
Enterprises
$66B$12B55600775
Portrait of Canadarsquos clean technology industry (2014)50
Clean technology investmentsb are on the rise in many countries Global exports of manufactured environmental goods doubled between 2005 and 2014 However the growth rate of the clean technology sector has been weaker in Canada than the global average The countryrsquos share of the world market dropped from 2 to 13 between 2005 and 201451 To catch up the Canadian and Quebec economies need to address a number of challenges
b For CED clean technology is associated with all technologies that improve environmental performance (eg air water and soil quality) compared with current and standard technology in a given market
In 2015 Canada joined 19 other countries in launching Mission Innovation a global initiative aimed at doubling government investment in clean energy RampD over five years
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
24 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Producers can also help grow the Canadian market by exploring new market segments For example Canada has 200000 First Nations members living in northern commu-nities that rely solely on diesel fuel for power generation54 Conversion to clean technologies could help improve the environmental economic and social indicators for 257 Indigenous communities Cities are also prime markets since the integration of clean technologies into urban infra-structure especially public transportation systems will be a crucial determinant of their growth in the years ahead
Lastly the adoption of clean technologies is critical to busi-ness productivity Encouraging businesses organizations and communities to incorporate clean technologies into their operations is essential to ensuring their long-term competitiveness as well as that of such pivotal Quebec sectors as aerospace and ground transportation
Challenge 3 Export of clean technologies
The ability to increase exports is largely determined by access to global value chains According to the OECD Canada ranks only 37th out of 40 countries in participation in global value chains55
This is a problem for Canadarsquos clean technology industry which is heavily made up of SMEs with little or no ties to major enterprises Helping firms in the industry to network and integrate global value chains is an essential condition to promoting their export growth
Challenge 4 Global value chains international direct investment and industrial clusters in Quebecrsquos clean tech sector
Global value chains and industrial clusters are closely inter-twined Attracting international direct investment devel-oping alliances between businesses and organizations and promoting the growth of local enterprises with the potential to play a strategic role in global value chains are all crucial factors in developing industrial clusters in the clean technol-ogy sector Participants in the consultations indicated that the lack of knowledge among businesses communities and consumers regarding clean technologies could hinder the development of industrial clusters in this sector
Challenges in clean growth Canadarsquos and Quebecrsquos innovation ecosystems offer a number of advantages for clean technology investors a competitive business climate world-class research and technology transfer facilities and a labour pool of highly skilled scientists But as important as these advantages may be they are not enough to ensure a competitive standing for Canada or Quebec in the sector Additional efforts have to be made to tackle the following challenges
Challenge 1 Business spending on RampD innovation and new product development
During CEDrsquos 2016 consultations participants identified manufacturersrsquo lack of engagement in RampD as one of the main obstacles to clean technology development in Quebec Canada ranks 22nd among OECD countries and 6th among the G7 in terms of business RampD spending52 It is more important than ever that businesses be given additional support to encourage their investment in RampD
Challenge 2 Clean technology commercialization funding and adoption
The small size of the Canadian market limits opportunities for domestic commercialization of clean technologies It also makes it more difficult for producers of emerging technologies to achieve economies of scale or obtain financing (owing to the higher level of perceived risk by investors)53 Export can counter this problem Many of the participants of CEDrsquos consultation stressed the necessity of using government procurement contracts to stimulate the commercialization of clean technologies in Canada Moreover the selection criteria used in the public sector could serve as a reference for prospective private sector clients and facilitate decision making when it comes to clean technology purchases It is important to note that one of the aims of the Federal Sustainable Development Strategy is to shrink the Government of Canadarsquos environ-mental footprint
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
25STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Opportunities for QuebecQuebec is a Canadian and North American pioneer and leader in the implementation of environmental regulations that promote clean technologies and a business environ-ment conducive to clean growthc Quebec and California have been working closely together since 2008 to encour-age clean technology development in their respective jurisdictions Most notably the two signed an agreement in 2012 linking their cap-and-trade systems for greenhouse gas emission allowances
Still Quebecrsquos clean technology producers could be doing better and taking fuller advantage of opportunities in numerous sectors and niches such as
bull aerospace and transportation where major global companies are investing in electrification of ground transportation
bull the green energy sector (eg wind power) which offers opportunities for local SMEs to integrate into global value chains and export their products and services to world markets
bull the remote community services market (eg Nord-du-Queacutebec Icircles-de-la-Madeleine) where openings are available for energy providers capable of supplying businesses (eg those capable of improving energy storage technologies)
bull green infrastructure
bull the biomass waste industry which offers countless prospects for businesses operating in the fields of biogas biofuels electricity and chemical bioproducts
bull pulp and paper where there are opportunities for diver-sification into bioproduct development
c The term ldquoclean growthrdquo refers to economic growth that ensures protection of the environment
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
26 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Integrate the principles of sustainable development into government procurement practices
bull Inform businesses on growth opportunities asso-ciated with clean technology development and raise public awareness of the issue
bull Implement an SME development strategy in the sector
bull Support technology showcases to promote commercialization
bull Provide financial assistance to exporters of products and services
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
27STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Indicator Target
Level of annual spending allocated to funding clean technology development and integration projects
$125M over 5 years
d The goal of the circular economy is to eliminate waste and increase resource use intensity while reducing environmental impact It consists of three fields that form a cycle sustainable procurement responsible consumption and recycling The circular economy leads to the emergence of new manufacturing practices particularly the use of inputs that are recycled recyclable and more energy efficient in manufacturing processes
e Industrial ecology is the set of strategies inspired by natural cycles and based on closed-loop flows of material and energy enabling enterprises and organizations to optimize resource use
Legend of challenges Business spending on RampD innovation and new product development Clean technology commercialization funding and adoption Export of clean technologies Global value chains international direct investment and industrial
clusters in Quebecrsquos clean tech sector
Courses of actionPromote the development of clean technologies by supporting projects aimed at
rsaquo developing businesses in the sector CED could provide funding for test beds projects to develop new products or processes and commercialization and start-up projects
rsaquo building business capabilities through the funding of organizations offering information coaching diagnostic networking structuring and technology transfer services
rsaquo encouraging partnership between SMEs and major contractors bound by Canadarsquos ITB Policy
In response to challenges
Support the adoption of clean technologies by fund-ing business ecologization projects essentially those that enable greener business practices (eg equip-ment purchases hiring of skilled personnel business diagnostics)
In response to challenges
Fund community infrastructure projects that have a positive impact on the environment (eg green space improvements integration of new clean energy sources use of recycled materials or clean technologies)
In response to challenge
Fund organizations dedicated to building a circular economyd industrial ecologye or bioeconomy network or a renewable energy industry
In response to challenge
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
28 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities provide enterprises with an environ-ment that is more conducive to knowledge transfer57 and attract more industries that produce leading-edge tech-nologies58 New spending in diversified economies also has a substantial multiplier effect on economic activity59
Diversification has become a critical prerequisite for the growth innovation and resilience of regional economies especially those that are reliant on a single sector That explains why CED will continue to support the economic vitality of all Quebec regions but will give priority to regions with a greater need for diversification To do so CED will use its Economic Development Index (EDI) to measure and compare the economic growth level of Quebecrsquos 104 RCMs The index is used in regional inter-vention strategies to ensure that a regionrsquos economic development is based on its assets and its ability to capitalize on them
Challenges in economic diversificationChallenge 1 Enhancing the competitive advantage
Quebecrsquos industrial structure is relatively diversified compared to that of the other provinces That is not the case however for the economies of many Quebec com-munities According to Statistics Canada data 14f of the 104 RCMs and equivalent territories in Quebec rely largely on a single industry for employment (more than 30 of their labour force works in that industry)60 Furthermore 71 of the 104 RCMs in Quebec have slow economic growth potential
Communities with diversified economies are less vulnerable to economic cycles and to the consequences of globalization technological changes and the depletion of natural resources56
ndash United Nations
3 SUPPORT COMMUNITIES TO PROMOTE THEIR ECONOMIC DIVERSIFICATION AND THEIR PARTICIPATION IN AN INCLUSIVE ECONOMY
Communities that diversify their activities broaden their industrial base thereby strengthening the resilience against economic uncertainties
f La Jacques-Cartier LrsquoIslet Bellechasse La Nouvelle-Beauce Robert-Cliche Lotbiniegravere Le Granit Le Val-Saint-Franccedilois Coaticook LrsquoEacuterable Mirabel Gatineau Maskinongeacute and Caniapiscau
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
29STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
These communities have insufficiently diversified econo-mies generally have fewer competitive advantages and are characterized by poorly organized economic activity and greater vulnerability to economic uncertainties They are often far from urban centres and rely on natural resource development or traditional manufacturing (manufacturing industries with low value-added)
Conversely communities with a diversified industrial structure have modernized the organization of their eco-nomic activities and have more assets and higher growth potential They are mostly urban or peri-urban and focus on value-added services and innovation They have a better ability to attract international direct investment which allows them not only to consolidate promising sectors of their economy but also to further diversify it
Challenge 2 Access to government programs
Stakeholders who participated in CEDrsquos consultations indicated that inequality among the communities had to be reduced so that they all have the same economic and social development opportunities The main challenge they identified was the centralization of governmental decision making and the lack of flexibility of government programs
Challenge 3 Entrepreneurial context and infrastructure
Although there are socio-economic and geographical differ-ences among the areas they represent stakeholders also identified the following major (and common) challenges
bull entrepreneurial succession and business creation
bull knowledge of business opportunities
bull upgrading of knowledge and transportation infrastructure
bull mobilization and control over development by local stakeholders
Opportunities for QuebecExperience has shown that development approaches implemented by the community and based on the initia-tive and know-how of its inhabitants and local businesses are more effective and sustainable Instead of reducing regional disparities government actors should focus more on leading each region to develop its full economic poten-tial The OECD promotes this vision of regional economic development and CED and the other Canadian regional development agencies agree with it61
In light of the literature review and past experiences economic development and diversification efforts should therefore
bull be flexible and adapt to regional realities
bull showcase the specific advantages of an area
bull produce more knowledge on each community and make sure it is disseminated
bull develop the skills of the communityrsquos human resources
bull be planned and implemented over an extended period
bull mobilize local stakeholders on an ongoing basis
bull provide access to sufficient funding to ensure full delivery of development plans
bull be based on specific definitions and metrics with which stakeholders in devitalized or poorly diversified communities agree
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
30 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Proactively plan economic diversification (not waiting for crises to act)
bull Encourage collaboration cooperation and coordi-nation of regional and sectoral players
bull Support regional entrepreneurship promotion and support organizations
bull Make program terms more flexible so they adapt to regional realities
bull Renew and effectively commercialize the regionsrsquo tourism offerings
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
31STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION Legend of challenges Enhancing the competitive advantage Access to government programs Entrepreneurial context and infrastructure
Courses of actionSupport the mobilization and joint action of regional economic development actors particularly in com-munities dealing with economic diversification chal-lenges CED plans to
rsaquo play a more significant role and collaborate with local stakeholders to mobilize the players and bring them together
rsaquo increase its support for mobilization projects in the regions (eg development strategies structured and focused action plans)
In response to challenges
Invest in showcasing regional competitive advantages (eg support the installation of community economic facilities promote regional strengths to attract invest-ment and tourism)
In response to challenges
Continue to encourage the development of local entre-preneurship in the communities by supporting projects that will promote business start-up and growth through regional development agencies including Community Futures Development Corporations (CFDCs) and Business Development Centres (CBDCs)
In response to challenge
Indicators Targets
Total investments generated in regions supported by CED $1 billion over 5 years
Direct international investments maintained or attracted in regions supported by CED
$5 billion over 5 years
Number of RCMs that have benefited from special support for economic recovery or development
10 RCMs in the next 5 years
Spending in Quebec regions by tourists from outside the province
$17 billion over 5 years
Number of tourists attracted to Quebec regions from outside the province
32 million over 5 years
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
32 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
The government is determined to work in partnership with Indigenous peoples so that they can contribute fully to Canadarsquos economic prosperity and enjoy the same oppor-tunities as other Canadians
CED is working with the Department of Indigenous and Northern Affairs and the Department of Employment Workforce Development and Labour to promote economic development and create jobs for Indigenous peoples62 The economic development of Quebec regions will take into account their unique status and their rights over land and resources63
Challenges in the economic participation of Indigenous peoplesThe 141915 Indigenous persons in Quebec represent 18 of the provincersquos population64 They belong to 11 Indigenous nationsg each with its own language customs and lifestyle
Indigenous persons in Canada on average have higher unemployment rates and lower individual incomes than those of non-Indigenous persons They are also the fastest growing segment of Canadarsquos population65 The unemployed Indigenous labour force will increase if nothing is done to foster their participation in economic life
Challenge 1 Financial and entrepreneurial capacity
The difficulty in accessing capital is one of the main obstacles to entrepreneurship for Indigenous commu-nities Other factors limiting their financial capacity for business start-ups include a higher unemployment rate than the Quebec average
Education level also has a significant impact on individualsrsquo ability to access and keep jobs and possibly start an enter-prise or go into business Only 9 of members of First Nations and less than 4 of the Inuit population have a university degree compared with 25 of non-Indigenous people Half of Indigenous persons over the age of 15 have dropped out of secondary school compared with only 21 of non-Indigenous persons66 This can be explained in part by the remoteness of many communities from college and university centres
Challenge 2 Access to programs and business opportunities
Government support programs are not always promoted adequately Although they are eligible entrepreneurs and band councils do not always have the necessary information to benefit from them Access to these programs is also complex because of the numerous stakeholders involved the variety of objectives and the eligibility criteria and administrative conditions that apply
4 FOSTER THE PARTICIPATION OF INDIGENOUS PEOPLES CONTRIBUTING TO THE ECONOMIC GROWTH OF QUEBEC BY ENCOURAGING ENTREPRENEURSHIP AND SOCIAL INNOVATION
The Government of Canada has made a commitment to renew and strengthen the nation-to-nation relationship between Canada and Indigenous peoples based on the recognition of their rights respect and the establishment of a genuine partnership
g Quebec Nations Abenaki Algonquin Atikamekw Cree Huron-Wendat Inuit Innu Maliseet Micmac Mohawk and Naskapi
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
33STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Challenge 3 Diverse needs of the communities
Whether it is a matter of culture or legal or policy issues the reality of Indigenous peoples in Quebec is not consis-tent67 Each First Nation has basic characteristics that have to be taken into account Among other things governance structures in the various Indigenous communities vary Some communities have signed self-government agree-ments (modern treaties) with Quebec and Canada while others have minimal governance structures Many are sit-uated somewhere between these two poles Indigenous and Northern Affairs Canada supports Indigenous com-munities in setting up strong effective and sustainable governments because this contributes to a communityrsquos socio-economic progress and its overall well-being
In addition many remote or isolated Indigenous commu-nities face challenges that impede their development First the shortage of family housing has an impact on the availability of affordable spaces for businesses Also certain communities can only be accessed by air or sea-sonal roads limiting transportation for people and the pro-vision of goods and services Lastly businesses located in remote regions also have to make do with poor quality Internet access which complicates most commercial and professional activities
Opportunities for QuebecCED can take action to support Indigenous participation in the economic growth of Quebec According to the Assembly of First Nations of Quebec and Labrador com-munity economic development has to go through the development of the social cooperative and entrepreneurial economies It is also based on access to natural resources the entrepreneurial capabilities of Indigenous people tech-nological innovations and access to funding and training68
The Government of Canadarsquos True North Treasure Initiativemdashpart of Quebecrsquos Strategic Partnerships Initiative in which CED participatesmdashactively reviews the supply chain operations of mining companies and other industries to identify business opportunities for Indigenous people The initiative has three specific objectives 1) develop Indigenous human capital (labour market) 2) strengthen Indigenous entrepreneurship and 3) enhance the value of Indigenous assets69 Natural resource operations in northern Quebec for instance could provide a major business opportunity for Indigenous people who could take part in goods and services con-tracting associated with those operations
In 2014 Quebec relaunched the Plan Nord with planned investments of $13 billion for the 2015ndash2020 period and potential opportunities for collaboration The Plan Nord seeks to create jobs and wealth by building on the value of mining energy tourism social and cultural potential in Quebec north of the 49th parallel70 Population growth in Quebec over the next 10 years will be mainly attributable to migration along with an increase in the number of Indigenous people Quebecrsquos young Indigenous people thus have many economic opportunities71
Moreover the traditional skills of Indigenous people their cultural and artistic heritage and their proximity with nature are significant economic assets for this population particu-larly in the promising field of tourism
Twice as many Indigenous as non-Indigenous people consider entrepreneurial careers72
ndash Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation
de lrsquoentrepreneurship
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
34 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
bull Facilitate access to capital and government support programs for entrepreneurs (lack of knowledge or complex administrative processes)
bull Gain a better understanding of community needs (consultations and information sessions on economic development)
bull Encourage sound governance in all areas enter-prises band councils other NPOs
bull Develop entrepreneurial capacity and the creation of enterprises
bull Recognize the economic value of traditional activities in the area
ENGAGEMENT STRATEGY 2016 ndash PARTICIPANTSrsquo IDEAS
Participants of the consultations held during CEDrsquos Engagement Strategy 2016 made a number of suggestions They were sorted based on CEDrsquos specific mandate and listed below All of the suggestions are provided in the Summary Report at wwwcedgccaCEDialogue
Pho
to c
redi
t In
dige
nous
and
Nor
ther
n A
ffai
rs C
anad
a
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
35STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
TAKING ACTION
Number of new projects supporting the economic growth of an Indigenous community or business
40 new economic development projects approved within the next 5 years
Number of informal dialogue mechanisms between CED representatives and Indigenous community representatives or business people
1 mechanism per region based on the interest of the Indigenous communities concerned
Indicators Targets
Legend of challenges Financial and entrepreneurial capacity Access to programs and business opportunities Diverse needs of the communities
Courses of actionIn consultation with representatives of Indigenous organizations analyze the needs of the communities and finding better ways to intervene
In response to challenges
Relax some of the program funding criteria for eco-nomic development projects with Indigenous people and provide them with tailored financial support
In response to challenge
Participate in the development of strategic partnership initiatives in Quebec by collaborating with government partners entrepreneurs and Indigenous people
In response to challenges
Build on collaborations and targeted communications
rsaquo Collaborate more extensively with partners having established contacts with representatives of Indigenous peoples (eg communities of practice and Indigenous organizations)
rsaquo Work with the young generation and increase access to basic funding required for business start-ups (down payment)
rsaquo Increase the number of partnerships with Indige-nous organizations and maintain existing ones
rsaquo Raise awareness of CEDrsquos programs by attending meetings and events organized by Indigenous people
rsaquo Promote concrete examples of successes from the communities entering into alliances with neighbouring communities and disseminating best practices
In response to challenges
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
36 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CEDrsquoS COMMITMENT GOING FORWARD
To be the key federal actor in the economic development of the regions of Quebec and foster inclusive growthBuilding on the Engagement Strategy 2016 CED will fulfill this commitment through a renewed intervention approach that is client-focused and where collaborators and stakeholders are consulted CED will continue to build on innovation to implement its programs more effectively Its approach will be based on five principles It will be
Adapted hellip to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
Collaborative hellip based on complementarity and dialogue with key stakeholders including regional actors federal departments and the Government of Quebec
Focused on delivery and results hellip
from policy and program design to implementation and measurement of results
Inclusive hellip to foster the economic participation of Quebecrsquos groups and communities including those of Indigenous peoples
Simplified hellip through the continued modernization of its ways of doing things to optimize the impact of its interventions
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
37STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 1 adapted approach
Approach adapted to the needs and economic challenges of Quebecrsquos SMEs regions and communities focusing on their strengths
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Some regions indicated a lack of coordination and regional collaboration
There is insufficient funding for higher-risk innovation projects
rsaquo Implement a strategy for each region to help businesses and the regions grow
rsaquo Take action and support businesses at every stage of their development
rsaquo Provide flexible funding tools that cor-respond to the realities of businesses and non-profit organizations (eg with respect to the repayment schedule)
rsaquo Provide targeted support for communi-ties dealing with unexpected situations affecting their economy
rsaquo CED will review the Economic Development Initiative (EDI) and associate economic indicators to obtain an up-to-date portrait of the economic situation of the regions
rsaquo CED will support mobilization and local and regional development plans by increasing the field presence of its business office advisors and will bring all relevant funding partner to the table
rsaquo CED will implement the solutions set out in the Engagement Strategy
rsaquo CED will review its funding tools (eg use of conditionally repayable contribu-tions) for enhanced risk sharing with SMEs
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
38 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 2 collaborative approach
Based on complementarity and dialogue with CEDrsquos key stakeholders including regional actors federal departments and the Government of Quebec
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Many programs and services are available to enterprises but enter-prises have a hard time navigating through them
Dialogue among devel-opment actors must be maintained
rsaquo Collaborate with Government of Quebec representatives including funding partners such as the ministegravere de lrsquoEacuteconomie de la Science et de lrsquoInnovation (MESI) the ministegravere du Tourisme and Investissement Queacutebec
rsaquo Collaborate with the other federal departments and agencies on funding growth-generating projects in Quebec and developing and implementing initiatives strategies and policies
rsaquo Support the implementation of federal initiatives for promoting the attraction of international direct investment in Quebec in cooperation with Invest in Canada
rsaquo In collaboration with community stakeholders help organize networking events to position SMEs with prime contractors as part of the ITB Policy
rsaquo Share the results of the Engagement Strategy 2016 and continue the dialogue to learn more about the challenges faced by the regions and enterprises
rsaquo Build on the presence of its 12 business offices and network of partners in the regions to develop a better understand-ing of the challenges and strengths of enterprises and the regions
rsaquo Implement the Canada Business Network program which provides a wide range of information on gov-ernment services programs and regulations
rsaquo CED will provide leadership and coordinate the implementation of federal priorities that have an impact on economic development in Quebec (eg services for accelerated-growth enterprises)
rsaquo CED will promote synergy between its actions and those of the various economic actors by creating and par-ticipating in economic development initiatives
rsaquo CED will disseminate more knowledge among its external partners including community economic development actors in Quebec
rsaquo CED will support enterprises and non-profit organizations in delivering their projects by helping them engage with each other and with the federal stake-holders concerned
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
39STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 3 approach focused on delivery and results
From policy and program design to implementation and measurement of results
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Performance measure-ment evidence and accountability to Canadians must be central to our work
CED must develop effec-tive tools for assessing the impact of its actions
rsaquo Contribute to the achievement of results by supporting business and regional projects that have been soundly analyzed
rsaquo Submit to Parliament CEDrsquos annual performance reports and five-year activity reports
rsaquo CED will adapt to changes (especially economic changes) by setting targets and objectives that can be adjusted to ensure that expected results are achieved
rsaquo CED will produce more frequent anal-yses of its interventions so that its actions can be quickly adjusted and its targets reached
rsaquo CED will focus its efforts on priority areas to maximize the impact of its interventions
Principle 4 inclusive approach
To foster full participation of Quebecrsquos groups and communities including those of Indigenous peoples in Quebecrsquos economic development
What CED Heard What CED Will Continue to Do What CED Will Do Differently
It is hard for Indigenous entrepreneurs to access funding and government support programs
In a context of increased global competition the contributions of various groups and communities to Quebecrsquos economic development need to be considered
rsaquo Implement the Economic Development Initiative of the Roadmap for Official Languages
rsaquo Support projects that foster the economic development of Indigenous communities
rsaquo Help implement the Canadian Multiculturalism Act by supporting certain projects
rsaquo CED will target challenges more effectively and tailor communica-tions to women youth immigrants anglophone minority communities and Indigenous people to make them more aware of its programs (CED will do this directly or through its network of partners and economic organizations)
rsaquo CED will train its employees to system-atize the analysis of potential impact of its interventions on the various groups that make up its targeted clientele
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
40 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
Principle 5 simplified approach
Through the continued modernization of its ways of doing things to optimize the impact of its interventions
What CED Heard What CED Will Continue to Do What CED Will Do Differently
Government programs need to be streamlined and simplified (eg eligi-bility criteria approval process repayment terms and conditions client reporting obligations)
rsaquo Review and simplify its processes to gain efficiencies and facilitate trans-actions with its clientele (eg online funding application form)
rsaquo Perform risk management
rsaquo Modernize the government-wide common grants and contributions management system
rsaquo CED will offer renewed innovative service delivery by reducing process-ing times for funding applications and upgrading its online client interface
rsaquo CED will optimize its mechanisms for monitoring performance measurement and feedback on the results obtained
rsaquo CED will simplify its interventions and ways of doing things by developing platforms for sharing information with other federal departments
rsaquo CED will be able to quickly adjust its actions by developing regional strategies that incorporate environmental scans
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
41STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
CONCLUSION
As an expression of CEDrsquos vision the Strategic Plan sets out the objectives action priorities and foundations of CEDrsquos regional economic development approach It draws on best practices in the field and identifies opportunities available to Quebec communities regions and entrepre-neurs along with the challenges they face The Plan outlines the scope of areas of intervention in which CED plans to take regional action to contribute to the development of Quebec businesses and regions
In addition the Strategic Planrsquos objectives are aligned with the Government of Canadarsquos areas for action in innovation
The economic environment will be difficult for the regions communities organizations and businesses in the coming years That is why CED will maintain its dialogue and collab-oration with all of Quebecrsquos regional economic development stakeholders And that is also why during this period CED will be updating its analyses and funding parameters so that it can address and adjust to the needs of its clients and collaborators in a timely manner
CEDrsquoS 4 OBJECTIVES
Innovation and GrowthTargets
rsaquo Start-up of 600 new projects with an ldquoinnovationrdquo component by 2021 (500 from growing businesses and 100 from NPOs)
rsaquo Implementation of the ldquoAccelerated Growth Servicerdquo by fall 2016
rsaquo Registration of 200 clients with the ldquoAccelerated Growth Servicerdquo in the next 4 years (by March 31 2020)
Economic Diversification of CommunitiesTargets
rsaquo Generation of $1B in investments over 5 years rsaquo Maintenance or attraction of $5B in direct inter-
national investment over 5 years rsaquo 10 RCMs will have benefited from special support
(economic recovery or development) in the next 5 years
rsaquo $17B in spending by tourists from outside Quebec over 5 years
rsaquo Attraction of 32 million tourists from outside Quebec over 5 years
Clean GrowthTarget
rsaquo Total spending of $125M over 5 years for clean technology development and integration projects
Participation of Indigenous PeoplesTargets
rsaquo Implementation of one dialogue mechanism per region based on the interest of the Indigenous communities concerned
rsaquo Approval over the next 5 years of 40 new support projects for economic growth opportunities for Indigenous communities or businesses
Standing by businessesStanding by regions
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
42 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
ENDNOTES
1 Institut de la statistique du Queacutebec (2017) Tableau statistique canadien feacutevrier 2017 volume 15 numeacutero 1 httpwwwstatgouvqccastatistiqueseconomiecomparaisons-economiquesinterprovincialestableau-statistique- canadienhtml (site consulted on March 6 2017) [in French only]
2 Institut de la statistique du Queacutebec (2016) Compendium drsquoindicateurs de lrsquoactiviteacute scientifique et technologique au Queacutebec ndash Eacutedition 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationcompendiumhtml (site consulted on March 6 2017) [in French only]
3 Statistics Canada (2016) Table 384-0038 ndash Gross domestic product expenditure-based provincial and territorial annual (dollars x 1000000) CANSIM httpwwwstatcangccaengneahr2012datacansimtablespeac384-0038 (site consulted on March 6 2017)
4 Eacuteconomie Science et Innovation Queacutebec (2016) Portrait eacuteconomique des reacutegions du Queacutebec ndash Eacutedition 2016 httpswwweconomiegouvqccaobjectifsinformerportraits-regionauxpageetudes-et-analyses-11106tx_ igaffichagepages_pi15Bmode5D=singleamptx_igaffichagepages_pi15BbackPid5D=69amptx_igaffichagepages_pi15BcurrentCat5D (site consulted on March 6 2017) [in French only]
5 Institut de la Statistique du Queacutebec (2014) Population selon le sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 agrave 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation- demographieperspectivespopulationpop_a_2011_2036_14htm (site consulted on March 6 2017) [in French only]
6 Institut de la Statistique du Queacutebec (2014) Effectif et poids deacutemographique des grands groupes drsquoacircge sceacutenario A ndash Reacutefeacuterence Queacutebec reacutegions administratives et reacutegions meacutetropolitaines (RMR) 2011 et 2036 httpwwwstatgouvqccadocs-hmistatistiquespopulation-demographieperspectivespopulationage_reg_14htm (site consulted on March 6 2017) [in French only]
7 Innovation Sciences and Economic Development Canada (2013) Age of entrepreneurs httpwwwicgccaeicsite061nsfeng02826htmlpoint2 (site consulted on March 6 2017)
8 Fondation de lrsquoentrepreneurship (2014) Qursquoest-ce qui motive nos jeunes agrave faire le grand saut httpswww2gouvqccaentreprisesportailquebecbulletinlang=frampx=bulletinampb=2669297835ampt=nampe=504847364 (site consulted on March 6 2017) [in French only]
9 The Chamber of Commerce of Metropolitan Montreal (2014) Transferring businesses to the succession a major issue for the Queacutebec economy and the sustainability of SMErsquos httpwwwccmmcaennewsetude_transfert_des_entreprises (site consulted on March 6 2017)
10 Statistics Canada (2015) Table 383-0029 ndash Labour productivity and related variables by business sector industry consistent with the North American Industry Classification System (NAICS) and the System of National Accounts (SNA) provinces and territories CANSIM httpwwwstatcangccaengneahr2012datacansimtablesplpc3830029-11 (site consulted on March 6 2017)
11 Ibid12 Ibid CED calculations13 Institut de la Statistique du Queacutebec (2014) Lrsquoinnovation dans les entreprises du Queacutebec et du Canada
httpwwwstatgouvqccastatistiquesscience-technologie-innovationinnovationindexhtml (site consulted on March 6 2017) [in French only]
14 Ibid15 Statistics Canada (2016) Education indicators in Canada An international perspective 2016
httpwwwstatcangccadaily-quotidien161215dq161215b-enghtm (site consulted on March 6 2017)16 Montreacuteal International (2016) A pool of highly qualified workers httpwwwmontrealinternationalcomenforeign-
investmentswhy-invest-in-montreala-pool-of-highly-qualified-workers (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
43STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
17 Investissement Queacutebec (2016) Why Quebec Power-generating capacity httpwwwinvestquebeccominternational enwhy-quebechydroelectricityhtml (site consulted on March 6 2017)
18 Queacutebec Forest Industry Council (2015) Industry by the Numbers httpwwwcifqcomenindustryintroduction (site consulted on March 6 2017)
19 Institut de la Statistique du Queacutebec (2016) Volume and value of mineral shipments by commodity Queacutebec 2013ndash2016 httpstatgouvqccastatistiquesminesproduction-mineralemine_exp_sub_anhtm (site consulted on September 7 2016)
20 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada ndash A data profile of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on March 6 2017)
21 Montreacuteal International (2016) Greater Montreacuteal A Global Force in Aerospace httpwwwmontrealinternationalcomenpublicationsaerospace (site consulted on March 7 2017)
22 Technocompeacutetences (2015) Diagnostic sectoriel de la main-drsquoœuvre dans le secteur des technologies de lrsquoinformation et des communications (TIC) au Queacutebec httpwwwtechnocompetencesqccaformulaire-telechargement-ds15 (site consulted on September 6 2016) [in French only]
23 Eacuteconomie Science et Innovation Queacutebec (2016) Sciences de la vie httpswwweconomiegouvqccaobjectifsinformerpar-secteur-dactivitesciences-de-la-vieno_cache=1 (site consulted on March 6 2017) [in French only]
24 LeacutegisQueacutebec (2016) Act respecting educational institutions at the university level httplegisquebecgouvqccaenShowDoccsE-141 (site consulted on March 6 2017)
25 Trans-tech (2016) Le reacuteseau des CCTT httpreseautranstechqccaen (site consulted on March 6 2017)26 Institut de la Statistique du Queacutebec (2015) Deacutepenses intra-muros de R-D (DIRD) en pourcentage du PIB Queacutebec
Ontario pays de lrsquoOCDE Union europeacuteenne G7 et certains pays hors OCDE 2004 agrave 2015 httpwwwstatgouvqccastatistiquesscience-technologie-innovationrecherche-developpementensemble-secteursdird_ocde_pibhtm (site consulted on September 6 2016) [in French only]
27 Communauteacute meacutetropolitaine de Montreacuteal Portrait of Greater Montreal 2016 Edition httpcmmqccafrdocumentation tx_solr5Bfilter5D5B05D=typedocHierarchy3A2FPC3A9riodiques2FCahiers+mC3A9tropolitains (site consulted on December 28 2016)
28 Montreacuteal International (2016) Direct access to the North American market httpwwwmontrealinternationalcomen foreign-investmentswhy-invest-in-montrealdirect-access-to-the-north-american-market (site consulted on March 6 2017)
29 OECD (2016) Regional Well-Being ndash Quebec httpswwwoecdregionalwellbeingorgCA24html (site consulted on March 6 2017)
30 Affaires municipales et Occupation du territoire Queacutebec (2015) Information concernant les dispositions leacutegislatives en vigueur permettant la mise en œuvre de la nouvelle gouvernance municipale en matiegravere de deacuteveloppement local et reacutegional httpwwwmamrotgouvqccapublicationsbulletin-muni-express2015n-06-23-juin-2015 (site consulted on March 7 2017) [in French only]
31 OECD (2016) OECD Economic Surveys Canada 2016 httpwwwoecd-ilibraryorgfreconomicsetudes-economiques- de-l-ocde-canada_1999009x (site consulted on March 6 2017)
32 OECD (2015) The OECD Innovation Strategy 2015 ndash An Agenda for Policy Action httpwwwoecdorginnovation (site consulted on March 6 2017)
33 Innovation Science and Economic Development (2009) Business Innovation and Strategy A Canadian Perspective httpswwwicgccaeicsiteeas-aesnsfengra02145html (site consulted on March 6 2017)
34 Institut de recherche sur les PME (Canada) (2015) Situation de lrsquoactiviteacute entrepreneuriale queacutebeacutecoise rapport 2015 du Global Entrepreneurship Monitor wwwuqtruquebeccainrpme (site consulted on March 7 2017) [in French only]
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
44 STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
35 Reacuteseau M (2016) Croissance et internationalisation les quatre profils de lrsquoentrepreneur queacutebeacutecois sous la loupe Indice entrepreneurial queacutebeacutecois 2016 httpswwwreseaumcomfrindice-entrepreneurial-quebecois (site consulted on Febuary 2017) [in French only]
36 CEFRIO (2015) Lrsquoindice du commerce eacutelectronique au Queacutebec (ICEQ) ndash Volet entreprises ndash Eacutedition 2015 Portrait de la situation des entreprises et pistes pour reacuteussir son passage au commerce eacutelectronique httpwwwcefrioqccapublicationstransformation-organisationnelleindice-du-commerce-electronique-au-quebec-volet-entreprises (site consulted on March 6 2017) [in French only]
37 Desjardins Eacutetudes eacuteconomiques (2014) Pour un Queacutebec plus prospegravere et plus entrepreneurial ndash La contribution des entreprises queacutebeacutecoises agrave lrsquoeacuteconomie deacutefis recommandations partage des responsabiliteacutes et prioriteacutes httpswwwdesjardinscoma-proposetudes-economiquesdossiers-etudes-guidesindexjsp (site consulted on March 6 2017) [in French only]
38 Information and Communications Technology Council (2014) Digital Adoption Advancing Canadarsquos place in a global economy httpwwwictc-cticcadigital-adoption-roadmap-how-to-advance-canadas-place-in-a-global-economy (site consulted on March 6 2017)
39 Council of Canadian Academics (2013) The State of Industrial RampD in Canada httpwwwscienceadvicecaenassessmentscompletedresearch_developmentaspx (site consulted on March 6 2017)
40 Ibid41 The Conference Board of Canada Centre for Business Innovation (2015) Competitiveness Culture and Innovation
Management How companies use innovation to drive competitive advantage Presentation given to CED on December 15 2015 (Dr Sorin Cohn)
42 Institut de la statistique du Queacutebec (2016) Exportations vers les principaux pays non-deacutesaisonnaliseacutees et en dollars courants Queacutebec 2016 httpwwwstatgouvqccadocs-hmistatistiqueseconomiecommerce-exterieurexpy1008htm (site consulted on Decembre 29 2016) [in French only]
43 Institut de recherche sur les PME de lrsquoUniversiteacute du Queacutebec agrave Trois-Riviegraveres (2016) Enjeux et deacutefis de commercialisation et ameacutelioration de la capaciteacute drsquoinnovation dans les PME Presentation given to CED on January 7 2016 (Michel Treacutepanier)
44 Ibid45 OECD (2002) High-Growth SMEs and Employment (no 2493092) httpwwwoecdorgindustrysmes (site consulted
on March 6 2017)46 Spencer G M Munk School of Global Affairs ndash University of Toronto (2014) Cluster Atlas of Canada A data profile
of resource manufacturing and service clusters in Canadian provinces using data from the 2011 Census and National Household Survey httpslocalideasorg20140622cluster-atlas-of-canada (site consulted on September 6 2016)
47 Forbes (2015) Steve Morgan on December 20 2015 Cybersecurity Market Reaches $75 Billion In 2015 Expected to Reach $170 Billion by 2020 httpwwwforbescomsitesstevemorgan20151220cybersecurityE2808B- E2808Bmarket-reaches-75-billion-in-2015E2808BE2808B-E2808Bexpected-to-reach-170-billion-by-20205d7836b62191 (site consulted on March 6 2017)
48 Montreacuteal International (2016) Big data profile in Queacutebec httpwwwmontrealinternationalcomenpublications big-data-profile-in-quebec (site consulted on March 6 2017)
49 Government of Canada (2016) Budget 2016 ndash Growing the middle class page 109 httpwwwbudgetgcca2016home-accueil-enhtml (site consulted on March 7 2017)
50 Analytica Advisors Synopsis 2016 ndash Canadian Clean Technology industry Report httpanalytica-advisorscomfilesenglish-synopsis (site consulted on March 6 2017)
51 Ibid52 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Balance Between Supply
and Demand for Innovation Presentation given to CED on September 12 2014
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)
45STRATEGIC PLAN 2021 ndash Canada Economic Development for Quebec Regions (CED)
53 Canadian Venture Capital Association (2015) Canadian Venture Capital Market Overview 2015 httpwwwcvcacaresearch-resourcesindustry-statistics (site consulted on March 6 2017)
54 Governement of Canada Working Group on Clean Technology Innovation and Jobs (2016) Final Report ndash September 2016 httpwwwclimatechangegccadefaultasplang=Enampn=64778DD5-1 (site consulted on March 6 2017)
55 Industry Canada Deputy Minister Committee on Economic Trends and Policies (2014) Improving Access to Global Value Chains Industry Canada Presentation given to CED on October 6 2014
56 United Nations (2005) The Nine Work Areas of The Nairobi Work Programme httpunfcccintadaptationworkstreams nairobi_work_programmeitems3994php (site consulted on March 7 2017)
57 Savoie D J Breau S amp Saillant R (2014) Nouvelles perspectives en deacuteveloppement reacutegional Essais en lrsquohonneur de Donald J Savoie Queacutebec Presses de lrsquoUniversiteacute du Queacutebec [in French only]
58 Henderson J Vernon (2010) Cities and Development Journal of Regional Science Vol 50 No 1 httpwwwncbinlmnihgovpmcarticlesPMC4255706 (site consulted on March 7 2017)
59 Polegravese M Shearmur R amp Terral L (2015) Eacuteconomie urbaine et reacutegionale Geacuteographie eacuteconomique et dynamique des territoires 4e eacuted Paris Economica [in French only]
60 CED (2016) Internal calculation based on Statistics Canadarsquos 2011 National Household Survey61 OECD (2010) Regional development policies in OECD countries httpwwwoecdorggovregional-policy
regionaldevelopmentpoliciesinoecdcountrieshtm (site consulted on March 6 2017)62 Prime Minister of Canadarsquos website (2015) Minister of Innovation Science and Economic Mandate Letter httppmgc
caengminister-innovation-science-and-economic-development-mandate-letter (site consulted on March 6 2017)63 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
64 Indigenous and Northern Affairs Canada (2013) Aboriginal Demographics from the 2011 National Household Survey httpswwwaadnc-aandcgccaeng13704389783111370439050610ref=driverlayercom2fimage (site consulted on March 7 2017)
65 Indigenous and Northern Affairs Canada (2013) Fact Sheet ndash 2011 National Household Survey Aboriginal Demographics Educational Attainment and Labour Market Outcomes httpswwwaadnc-aandcgccaeng13763292057851376329233875 (site consulted on March 7 2017)
66 Beaulieu A Gervais S amp Papillon M (2013) Les Autochtones et le Queacutebec httpwwwpumumontrealca catalogueautochtones-et-le-quebec-les (site consulted on March 7 2017) [in French only]
67 Ibid68 Assembly of First Nations of Quebec and Labrador (2007) Final summon to the provincial political parties Our
Principales and issues the Obligation for Quebec to Answer ndash First Nations Essential to the Furture of Quebec httpwwwapnql-afnqlcomenpublicationsdocumentsphp (site consulted on March 7 2017)
69 Indigenous and Northern Affairs Canada (2014) True North Treasure Initiative ndash Labrador Trough httpswwwaadnc-aandcgccaeng13994750375081399475191016 (site consulted on March 6 2017)
70 Socieacuteteacute du Plan Nord (2014) Plan Nord ndash A vision for 2015ndash2035 httpwwwplannordgouvqccaenvision-2 (site consulted on March 7 2017)
71 Indigenous and Northern Affairs Canada (2014) Federal Framework for the Aboriginal Economic Development ndash Progress Report ndash June 2014 httpswwwaadnc-aandcgccaeng14049199554641404921311609 (site consulted on March 7 2017)
72 Centre de vigie et de recherche sur la culture entrepreneuriale de la Fondation de lrsquoentrepreneurship (2011) Core Indicators of Entrepreneurial Dynamism among Quebecrsquos Aboriginal Peoples httpwwwcdepnqlorgpublications_engaspx (site consulted on March 6 2017)