Commentary

Better investment, better productivity

Rowser — Mon, 22 Feb 2010 10:38:53 -0400

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Telegraph-Journal, Published Monday February 22nd, 2010

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http://telegraphjournal.canadaeast.com/rss/article/961833

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We've got a problem.

We like to think we live in a place where a lower cost of doing business gives us a market advantage, but apparently that's not the case.

A 2008 study by KPMG shows the cost of operating a business in Moncton and Fredericton to be only about five per cent lower than the U.S. average and suggests the cost in locations such as Bangor, Quebec, Dallas and Lexington, are virtually identical to our own. India, China and other less developed nations, have a substantial cost advantage.

One of the usual refuges in this case would be to suggest productivity works strongly in our favour, however the facts don't appear to support that notion either.

Canada's productivity relative to the United States and the countries belonging to the Organisation for Economic Co-operation and Development has been steadily declining.

The Council of Canadian Academies reported in May that Canada has fallen from 94 per cent of U.S. productivity in 1985, to just over 75 per cent in 2007.

A 2008 OECD report ranked Canada 15th among leading industrial nations in productivity growth between 1985 and 2006.

And it gets worse rather than better when we look closer to home. According to Statistics Canada, New Brunswick's GDP per capita is the second lowest in Canada, and has declined relative to the Canadian average in each of the last four years.

So, we're losing ground to the rest of the country, which is losing ground to the rest of the industrialized world - probably not where we want to be.

Not surprisingly, it appears technology can help.

Studies over the last decade have consistently cited higher levels of ICT investment as the primary reason for the productivity advantage the U.S. holds over Canada and Europe.

A 2008 study on provincial productivity by the Centre for the Study of Living Standards reported "ICT investment in particular, is a uniquely important driver of productivity growth".

A 2005 paper by Fuss and Waverman, attributed over 50 per cent of the U.S./Canada productivity gap to higher levels of American ICT investment, while the Council of Canadian Academies stated in 2009 that ICT was a key driver in U.S. productivity growth.

Unfortunately, this too appears to be an area where we are under-performing.

In January, the Atlantic Provinces Economic Council revealed New Brunswick has the lowest per worker levels of technology investment in Canada. The Centre for the Study of Living Standards has New Brunswick slipping from 7th to last in Canada in Real ICT Investment per Worker between 2000 and 2007.

So to summarize, New Brunswick's productivity and levels of ICT investment are the lowest in the country, and it's well established that higher levels of ICT investment result in substantially better productivity.

Sounds like an opportunity to me.

But of course, it's not as simple as throwing money at technology and waiting for productivity to blossom. I'm pretty sure if the owners and operators of New Brunswick businesses could see a way to improve their bottom line, they would have already made those investments.

So what should be done?

Our first step likely needs to be obtaining a more comprehensive appreciation for why business owners aren't seeing the opportunities, or if they do see them, what's preventing them from acting on them.

With that understanding in hand, we would be in a much stronger position to identify the actions which should follow.

The leadership for this needs to come from the stakeholders, namely Business New Brunswick, the New Brunswick Business Council, le Conseil Economique du Noveau Brunswick, the Canadian Federation of Independent Business, and the IT sector.

The alternative? Well if you keep doing what you've done, you'll keep getting what you got.

Larry Sampson is the executive director of the New Brunswick Information Technology Council and vice-president of Knowledge Management for Acron Capability Engineering.

Mixing business with technology

Rowser — Mon, 23 Nov 2009 07:20:30 -0400

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John Pollack

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Telegraph-Journal, Published Monday November 23rd, 2009

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http://telegraphjournal.canadaeast.com/journal/article/865932

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The ICT sector is an enabling sector that allows you to do interesting things to solve business problems,’ say David Baxter, vice-president of innovation for T4G Ltd., a national firm specializing in technology solutions for business problems. Photo by: Noel Chenier/Telegraph-Journal

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There are plenty of opportunities for people with broad ranging skills to work in technology, executive says

It seems almost everywhere you look there is some sort of computer technology.

A much larger percentage of people work from a desktop or laptop every day than in decades past, and more and more people are carrying around handheld computers in their pockets they call smartphones.

Though using email, word processors and web browsers are more or less common knowledge, actually understanding how a computer works - or how to fix it - is a rarity.

But that doesn't necessarily matter for someone looking for a job in the technology sector says David Baxter, vice-president of innovation for T4G Ltd., a national firm specializing in technology solutions for business problems.

Baxter, who comes from a business background, says there are plenty of opportunities for people with a broad range of specialties to work in technology in New Brunswick.

"The ICT sector is an enabling sector that allows you to do interesting things to solve business problems," he says. "There is a certain amount of knowledge equity that you build up as you progress through your career."

This can be an asset for tech firms.

E-Health companies value insight from health-care professionals, energy tech firms want to hear from power sector veterans and technology workers often needs business people to help monetize ideas, he says.

Although there is a continent-wide shortage of technology-trained workers, Baxter says people with other complementary experience are needed as well.

"I believe collaboration is necessary anywhere," he says. "It's one of the conduits to making innovation happen."

Todd Murphy, co-founder of Saint John-based tech startup MedRunner Health Solutions Inc., knows first hand how this can help a new business.

The University of New Brunswick MBA student looked to his school's computer science faculty to find people with the technical skills needed to make his idea for a paperless prescription service a reality.

But this wouldn't have happen if Murphy hadn't taken the initiative to walk down the hall, something he says not enough people do.

He says there should be more communication and collaboration between business, computer science and engineering students as well as their related counterparts at the community colleges.

"They may not come up with anything, but it gets them talking," he says. "There are lots of business people out there that want to start a business but they can't find the right people."

But startups aren't the only place where technology-interested non-techies can find a job, Baxter says. Plenty of the province's ICT firms have a need for them as well.

"The other opportunities have more to do with utilizing your creative, or your problem solving abilities," he says, adding big-picture thinkers and the ability to forecast future trends are often valued. "There are lots of opportunities for people to come in with that kind of perspective and apply a technology solution to what really is a business challenge."

After the necessary collaboration between technology and business people and other specialists has happened, Baxter says all parties will be better prepared for possible future endeavors.

"It is a two-way street," he says. "Whether you're coming in with a technology orientation or coming in with a business orientation, you learn enough about the other and what it takes to apply that type of creativity."

What makes New Brunswick so smart?

Rowser — Mon, 09 Nov 2009 21:24:04 -0400

Author

Dave Webb

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Computer World Canada, Published Monday, November 9th, 2009

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http://www.itworldcanada.com/news/what-makes-new-brunswick-so-smart/139264

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The Intelligent Community Forum named two New Brunswick cities among the seven most intelligent communities in the world. Why Fredericton and Moncton are leaders in the new economy

What makes a community intelligent?

For Robert Bell, the definition begins with what an intelligent community is not.

"It is not about being the biggest community, the richest community, even the community that looks best in a bathing suit," the co-founder of the New York City-based Intelligent Community Forum told an audience at a recent Economic Club of Toronto luncheon.

It's not just about blindingly fast broadband or cutting-edge university research, either. "It comes down to three things: what they do, how they do it and why they do it," Bell said.

Bell's organization named two New Brunswick cities, Fredericton and Moncton, among the seven most intelligent cities in the world in 2009. New Brunswick will soon be the first jurisdiction in North America with broadband access for 100 per cent of its population, and a deal with Bell Aliant will extend fibre-to-the-home connectivity to 70,000 homes in Fredericton and Saint John by the middle of next year. But broadband access is merely "table stakes," Bell said.

A skilled knowledge workforce -- not just engineers and grad students, but everyone "from the checkout counter to the research lab" -- is key. "Innovation is the only thing, quite frankly, that drives value anymore," Bell said.

Digital inclusion is also a barometer of community intelligence. People's lives shouldn't be worse because of where they live or because they're poor, Bell said.

"Communities work on digital inclusion because it's morally right," he said.

In the early 1990s, both cities were at a crossroads. Fredericton, traditionally an institutional city driven by government and universities, found itself facing negative growth for the near future, though the city had been able to take growth for granted in the past, said Don Fitzgerald, executive director of strategic initiatives for the city.

In Moncton, the situation was even more dire. The city was a railway hub for the east, largely dependent on the Canadian National Railway. When CNR pulled out in the late 1980s, it threw 4,000 to 5,000 people out of work, and unemployment reached 20 per cent, said Ben Champoux, business development specialist with the City of Moncton. Half of the downtown was boarded up, he said.

"We could easily have disappeared from the face of the earth," Champoux said.

The timing was lucky. Moncton had to go back to the drawing board just when telecommunications began to change the way people worked, Champoux said. Location isn't as crucial in a knowledge economy.

Champoux credits local leadership, regional and intergovernmental collaboration, private sector engagement and infrastructure investment with creating 25,000 jobs - a 50 per cent increase - over the last 15 years.

Meanwhile, Fredericton was creating its first economic strategy. Leaders there recognized the city's institutional heritage meant something different in the knowledge economy.

"We realized we were a knowledge community, we'd always been a knowledge community," Fitzgerald said.

But broadband cost about three times what it did in Toronto or Boston, Fitzgerald said, and the community wasn't large enough for service providers to build out. So the city built its own telecommunications company.

This prompted the incumbents to try to recoup their market share, according to Fitzgerald. "That fuelled the switch from an institutional community to an entrepreneurial community," Fitzgerald said.

Fredericton now boasts Canada's largest Wi-Fi network, Fred-eZone, entirely free to use. In Moncton, the entire public transit system is Wi-Fi-enabled.

According to NewBrunswick Minister of Business Victor Boudreau, a recent deal with the province of Quebec will make New Brunswick even more attractive for business. The province's energy utility, NB Power, will be sold to Hydro Quebec, eliminating 40 per cent of the provincial debt. Boudreau said the deal freezes commercial and residential electrical rates for five years, and ties industrial rates to those in Quebec, which are among the lowest in North America, he said. It makes New Brunswick "the most cost-effective, technology-friendly jurisdiction in Canada," he said.

Gazing at the future of communications

Rowser — Mon, 09 Nov 2009 10:08:08 -0400

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John Pollack

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Telegraph-Journal, Published Monday November 9th, 2009

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http://telegraphjournal.canadaeast.com/journal/article/851175

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David Jacobson

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Emerging technologies expert giving presentation in Saint John Tuesday
With technology changing so fast, many people find it hard to guess what the future of communications will look like.

But David Jacobson has some potentially useful insights based on trends he has seen.

The director of emerging technologies for PricewaterhouseCoopers LLC in Toronto will be in Saint John Tuesday to give a presentation titled Adaptation, Success or Extinction?

The New Brunswick chapter of the Canadian Women in Communications is hosting the event.

Jacobson sees the role of social networks and blogs, which give anyone with Internet access a forum, and smartphones, which put the web in your pocket, as particularly significant changes we've seen take off in the last few years.

"The classical top down approach to things is rapidly changing to a bottom up approach," he says. "People are very comfortable now using electronic devices and are exploring life and business in ways they've never done before."

While most traditional media have always had public forums, such as letters to the editor, or listener call-ins on broadcast shows, Jacobson says people are more inclined to participate in these new online forums.

Because of this, Jacobson says organizations and individuals now have more access to what he refers to as tactic knowledge - the collection of a person's education and experiences and the analysis and opinions they've formed from it.

In a recent white paper he wrote: "Tacit knowledge is likely the largest, most valuable distributed database in any organization. However, this accumulated knowledge is not easily accessible or explicit to those around us, and by adding our own colour to this knowledge using our innate abilities, education, training, lifestyle and experiences, we further reduce the likelihood of easily exchanging such information."

But he says social networks help unleash much of this knowledge in ways never before seen. He uses the example of the firm he works for which employs more than 5,000 people across Canada, many of whom, he says, are well educated and highly-skilled.

"By increasing the exchange of knowledge (through social networking), we can do better than we have through conference calls and meetings," he says.

Jacobson says web 2.0 has given consumers more power. "The consumer has actually become the selfsumer," he says. "Instead of relying on commercials, the selfsumer takes much more active role in discovering (products and services.)

"They can find things by doing their own research," he says. "There are many websites now which will give you comparisons between various products."

On the topic of the future of various media, Jacobson doesn't buy the argument of traditional media vanishing at the hands of the Internet.

"(But) there are changes no doubt in how these traditional media operate and what they cover," he says. "Physical paper will be tied into digital media, not necessarily replaced by it."

He says all media are becoming multi-media and this trend will only continue. Paper is coming "alive" in this new age of technology, he says. He sees plenty of future potential in an existing smartphone application that can read barcodes through the small camera on the device. Already some print ads have a barcode that when "scanned" with a smartphone will bring the user to a website aimed to market the product being advertised.

He believes this is just the beginning of the innovations in printed media.

"People do like to actually hold things in their hands," he says. "Just imagine you open a card and it plays you a video."

Jacobson says the smartphone is increasingly becoming medium of choice for viewing video for many people and that will only continue with further technological advances.

"Another future which not everyone has heard about is smartphones that have inbuilt projectors," he says. "So you can point your cellphone at a wall and have a bigger screen effect."

The Dawn of a New Era

johnsgunn — Wed, 04 Nov 2009 09:51:08 -0400

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Peter Lindfield

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Telegraph-Journal, Published Tuesday November 3rd, 2009

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http://nbbusinessjournal.canadaeast.com/journal/article/844664

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There are at least two prevailing views about the potential of New Brunswick's emerging economic identity. Believers assert that over the next twenty years, if not sooner, New Brunswick will be on the road to being a self-sustaining economic culture. Skeptics respond that its growth is bound to falter amid the environmental, social and political problems deeply rooted in its history.

While these two perspectives may be persuasive and compelling to each of their constituencies, they are simplistic. New Brunswick has become difficult even for insiders to see clearly in part because it is a transforming business environment.

There are at least three elements in New Brunswick's future stemming from the cultural, economic, and political evolution of this unique province that will produce different outcomes from the way many outsiders suspect.

First, the momentum of entrepreneurship will provide an unprecedented level of competence for New Brunswick enterprises. After growing up with the limitations presented by an inward-looking focus on local markets, businesspeople have begun to call that perspective into question.

Now, the potential of success suffuses the minds of fledgling entrepreneurs. Young businesspeople, driven by ambition and with a sense of the opportunity of global integration, are eager to compete beyond New Brunswick's borders. Nurtured by bootstrapping enablers such as 21inc and propelICT, they now see themselves as among the Government will realize that to turn startups or young firms into competitive enterprises it will need to support much stronger management capabilities. Executives will regularly attend management and organization development training sessions, held at top academic institutions where they will be exposed to cutting-edge management philosophy and techniques.

Industries will be on a global watch for companies that will help New Brunswick build up its strategic reserves in management expertise. New Brunswick will no longer be an isolated place, and its bridge to the outside world will be a growing cadre of people who are comfortable everywhere.

Second, the emphasis on relentless experimentation and innovation will make New Brunswick a productive environment for economic growth.

Financial support for research and development will substantially increase. New Brunswick will be a regular stop on pilgrimages made by venture capitalists. Universities and industry associations will collaborate to create business incubators offering cheap rents, technical infrastructure and marketing expertise. Government will dramatically increase support to university technical programs to raise them to world-class status and will redouble incentives to encourage universities, professors and returning students to commercialize their research.

Perhaps the most salient quality of the new innovators will be their willingness to take chances and learn from failure. They will require a relatively low burden of proof when deciding to invest in a new product or technology. Speed will characterize every action and they will learn from one another since word travels quickly about practices and results.

Incremental innovation will lead to breakthroughs that appear far more original than anything emerging from New Brunswick today. Some technological developments will seem to come out of nowhere and could have transformative effects everywhere.

Third, global ambition will allow New Brunswick to foster sustained growth in the emerging markets of the developing world. The significant trend will be New Brunswick's increasing investment in other countries, particularly in the developing world including Asia, the Middle East, Latin America and Africa.

The best companies will quickly develop sophisticated supply chains, brands, research labs and financial infrastructure. Even if only a small percentage of globally-oriented entrepreneurs cross this threshold, it will have a striking impact on the business community. And many business leaders are eager for that maturation.

Some of this investment represents what we may call the new "Quiet Power" of New Brunswick but it will also be the natural consequence of a confident global entrepreneurialism.

These three trends will be unexpected only because they are not fully visible. In the end, New Brunswick is facing a very exciting prospect: its first chance of a renaissance in more than one hundred years.

Peter Lindfield is president and CEO of Balanced Viewpoint Inc. He lives in the Fredericton area and can be reached at peter.lindfield@balancedviewpoint.com.

Embrace the web

Rowser — Sat, 31 Oct 2009 12:56:52 -0300

Author

Murray Etheridge

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Time and Transcript, Published on Friday October 30th, 2009

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http://timestranscript.canadaeast.com/transcript/article/841033

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The web has changed more in the last two years than in the 15 years since its commercial introduction.

With such huge change coming just after the dot com bust in 2000, I don't blame organizational leaders for their trepidation and uncertainty over the web. But the web has resurrected for the better -- with big lessons learned.

With the emergence of web 2.0 into our lives, the Internet has become a true two-way communications vehicle where people can have their voices heard and get responses from another person -- not from a corporation.

Can your web assets handle the conversation?

If your website is five years or older, you are jeopardizing the reputation of your firm as it may no longer meet the expectations of your prospects to interact with you online. The web today is giving more and more power to everyday people, creating a level playing field against the controlling corporate giants.

The most notable dot com company that pioneered this business transformation was Amazon.com in 1995. They are one of the few true fully web-based firms, now worth billions, that made it through the stock market crash of the web industry. Their founder, Jeff Bezos, believes they survived due to their investment in deeply understanding their customers and the power of word of mouth.

Everyone has an opinion about the books they read and customers simply wanted to share, and hear what others thought of a particular book before purchasing. This basic concept struck fear into the 'Bricks and Mortar' firms, but it is this peer-to-peer enablement that was one of the biggest lessons learned from the dot com bust.

The rebuilding of the web industry is coming from the public at large and their need to communicate. The faith in all things corporate is tarnished and people trust and seek the view of like-minded strangers more. With the ease of publishing en masse in this web 2.0 world, everyone can share their views. And it's not only a voice, but the power to build as well. Web 2.0 tools in the hands of amateurs and hobbyists have driven many trends and innovation of the web today. Smart, successful companies are getting out of the way to leverage this participatory power shift. John Heilemann, an Internet journalist guru, calls it "web-enable people power."

So how should your company take advantage of the new and improved web? First leverage the power of this peer-to-peer interaction by listening to what your target community likes and dislikes. Using social media tools including industry-focussed forums can give your company candid advice from target users so you can evolve your web assets with the marketplace. Fresh content and continuous improvements to your site attract and retain more customers.

Your website should be relevant, in the eyes of your target audience, before investing heavily in driving traffic to your site. It's OK to be skeptical of all the hype surrounding the latest social media tools. Actively use them to drive traffic, but realize that -- similar to putting your home on the market -- if your house isn't in order you can do more harm than good. With peeling paint, screaming kids and water stains on the ceiling, the chances of making the sale are pretty low.

Be cautious but continue to invest in your web presence. Changes in your site are a sign of a healthy company. Listen, strategize, update and measure should be an ongoing cycle for your web assets. Stay in the conversation and embrace the change, and real ROI will follow.

* Murray Etheridge is with ISL, the largest Atlantic Canadian web marketing and development firm. Entry Point appears every Friday in the Times & Transcript. You can reach him at metheridge@isl.ca or by phone at 506-855-0754.

Entrepreneurs needed to market innovations

Rowser — Tue, 27 Oct 2009 10:51:08 -0300

Author

Chet Wesley

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The Daily Gleaner, Published Tuesday October 27th, 2009

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http://dailygleaner.canadaeast.com/gleaner/article/837111

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I know they're out there, because I hear them say this all the time: "I'd really like to start a company, but I just don't know in what."

I'm talking about people that want to go into business for themselves - entrepreneurs. To do something they're passionate enough about to take on the risks and midnight hours that inevitably go with it. Many are working for other companies right now. Some already own successful businesses and are looking to spread their wings. What to do? What to do?

Who said that you have to come up with your own idea? What matters is that you find an opportunity that gets you excited about starting something new and making it a success. It doesn't matter if you're not the expert in whatever grabs your interest. There are a lot of innovators in the world, and most have a serious need for business expertise.

If you're looking for a great business opportunity, here's something you need to know: there's a lot of really smart people developing amazing innovations who have no interest in business whatsoever. Of course, they are motivated to turn their innovations into commercial successes, but becoming an entrepreneur? Not exactly.

And when it comes to getting innovations out into the marketplace, a shortage of entrepreneurs exists. Even with a number of funding programs available from organizations like ACOA, the BDC, New Brunswick Innovation Foundation (NBIF), and other private capital sources available to help make it happen.

Look at KnowCharge Inc., a company in Fredericton that's in the process of producing its first electro-conductive paper packaging products for the electronics industry. More than 30 per cent of all electronic devices are ruined every year because of static shock during shipping, costing companies over $180 billion worldwide. But it wasn't the founders of KnowCharge that invented the product.

Robert Morrow, the company's president, first caught wind of the technology when he was an MBA student at UNB. Seeing the opportunity, he got the ball rolling by negotiating a licence to use the patented process, invented by Yonghao Ni, so he could commercialize it.

With his business plan in hand, Morrow then entered his business into the NBIF's Breakthru business plan competition, winning a $50,000 investment and another $10,000 in legal and accounting services. After just six months, he made enough inroads with industry, such ALX Technical, that does business with several electronics giants like IBM and Honeywell, attracted several hundreds of thousands of dollars more in investments.

This is just one story. There are several more.

So how do you find out about who's inventing what and where? A starting point is picking a discipline within the universities' science and engineering departments that interest you, and browsing its faculty's profiles. Many professors have their own web page detailing their research interests, current research projects, and lists of papers they have published.

Once you find a professor of interest, you can search the online databases of ACOA, the National Research Council, the Natural Sciences and Engineering Research Council, the Canadian Foundation for Innovation for disclosures about the projects those researchers have on the go.

The New Brunswick Innovation Foundation keeps a complete list of research projects with commercialization components on its website. Plus, all of the province's universities have a research services and technology transfer office where you'll find industry liaisons that specialize in matching up their researchers with companies and entrepreneurs.

It's one thing to bring a new product to market that people and industry want. It's another thing to bring a new product to market that changes an industry altogether, or what some call a "paradigm shift."

Like the already ancient music CD (now giving way to the MP3,) that practically shut down the vinyl industry.

Why?

Because the CD went from what was once an exorbitantly priced novelty to the industry standard.

That's the business our province's researchers are in. Creating products and processes that set new standards. We just need more entrepreneurs to help get their global-shaping technologies out and into the world.

Chet Wesley is the director of communications at the New Brunswick Innovation Foundation.

The foundation makes investments in new growth-oriented companies and commercially driven research.

Is red tape smothering economy?

johnsgunn — Wed, 14 Oct 2009 12:18:11 -0300

Author

Jesse Robichaud

Source

Times & Transcript, Published Tuesday October 13th, 2009

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http://timestranscript.canadaeast.com/search/article/822367

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Province, City of Moncton review how they spend economic development cash

In his State of the Province address last January, Premier Shawn Graham bellowed that his government's priorities are "the economy, the economy and the economy."

That message was simple enough, and so is the goal shared by municipal, provincial, and federal governments who spend taxpayer dollars to stir economic development in the goal of creating wealth and more tax dollars.

But when it comes to economic development in New Brunswick, there is a maze of taxpayer-funded paths built by governments, from economic development departments and corporations, the Atlantic Canada Opportunities Agency (ACOA), Business New Brunswick, and the Enterprise network, which is present in all regions of the province and funded by the three levels of government.

In addition to Business Area Improvement organizations like Downtown Moncton Inc., chambers of commerce, and more, these organizations administer hundreds of programs aimed at the goals of attracting business to the province and encouraging homegrown entrepreneurs.

If the panoply of agencies and services is confusing to the general public, it can also leave some entrepreneurs scratching their heads, says Université de Moncton economic development expert Donald Savoie.

"At the moment if you are an entrepreneur in Moncton you have 15 or 20 doors to knock on, and entrepreneurs might be missing out on something if they don't knock on a certain door," said Savoie.

Savoie said something should be done to allow entrepreneurs to spend their time doing what they do best rather than dealing with bureaucrats and filling out applications.

"The last thing you want them doing is running around and chasing economic development agencies," said Savoie.

"Surely if there is a place you should have one-stop shopping it is in the economic development field."

Savoie said he understands that there are various levels of government participating in the economic development fields, but he said taxpayers' interests need to be considered.

Considering the debts that are currently being piled up at all levels of government as stimulus spending is distributed, Savoie said there is a need to cut down on overlap.

"I think governments should keep in mind there is only one taxpayer," he said.

Savoie said there is a "crying need to rationalize" the number of agencies working in the economic development field.

"I think the time has come for the three orders of government to sit down and say we have a lot of economic development agencies running around doing similar work, and it's time to take a good look."

Savoie isn't alone in believing that it is time to update the approach to economic development in New Brunswick.

Both the province of New Brunswick and the City of Moncton are conducting a review of how their bureaucrats drum up business.

Mayor George LeBlanc said the point of the review is to look at all the places the City of Moncton is directing funds toward economic development.

He said it is important "to make sure they are all working effectively and that there isn't any unreasonable duplication of effort."

LeBlanc said councillors often discuss whether economic development efforts are being properly channeled at budget time and during regular meetings.

However, he said this review, which is being conducted by the city's Prosperity and Economic Development committee, will dig deeper.

LeBlanc said a review is necessary based on the sheer amount of money that is spent to help the city's economy.

For example, he said city taxpayers contributed $456,000 to Enterprise Greater Moncton alone last year, which is more than Dieppe, about $120,000, and Riverview, about $70,000, and ACOA, about $230,000.

"Clearly, there is money beings pent by all agencies, so it is only common sense we would sit adown and have a look and make sure we are not spending the same dollar twice," said LeBlanc.

"Not only that but to make sure we are doing things effectively so that everyone's role is well understood."

Meanwhile, the Liberal government recently announced that it would establish Northern Economic Development Agency as a branch of the Department of Business New Brunswick located in Bathurst.

In addition to the new agency, which will place about 20 staff, Business New Brunswick is reviewing the way it approaches economic development.

"We are going to be reviewing all of our programs and incentives that are in place," said Business New Brunswick Minister Victor Boudreau.

Boudreau says organizations such as the Enterprise network will continue to have a role to play, but the province is going to look at different models that could help "create better synergies between the players in economic development."

He said he doesn't expect the province to mimic Nova Scotia's approach of handing off economic development initiatives wholesale to the private sector.

However, he said Premier Shawn Graham is interested in adding a private sector element to the way the province handles economic development.

"The premier referred to it as a hybrid approach," said Boudreau.

"Nova Scotia Business Inc., is 100 per cent private, Business New Brunswick is 100 per cent public, and we want to have a mix."

Between now and January, Boudreau said he will be consulting with various stakeholders, from banks and credit unions, entrepreneurs and business leaders.

"The private sector has said they want to play a larger role in economic development, and I am going to call them on that."

Boudreau said the review could help reduce duplication, but he said that is not the point of the exercise.

Nancy Mathis, of the University of New Brunswick's Wallace McCain Institute, said she hears frequently from entrepreneurs who say they feel lost navigating the maze of economic development avenues.

"For entrepreneurs, time is their most precious resource, and one of their challenges is they will go to one organization for help, and they will get some help, and they will be referred to another organization," she said.

Mathis said entrepreneurs have been asking for a tool that can help direct a customized search of economic development programs based on their specifics needs.

She said the problem often isn't the programs and agencies that currently exist, but the difficulty entrepreneurs have in finding the right place to start.

"It's not that there's a lack of support, there, it's just a lack of a roadmap," she said.

"There are some organizations that are incredibly helpful, and they know how to properly steer the entrepreneur, but it is sort of luck of the draw."

Mathis said an online portal that would feature all of the available programs and agencies would be ideal. She said there have been some projects of that kind, but they are still in the early stages.

The chairman of the Greater Moncton Chamber of Commerce, and president of Malley Industries Inc., Terry Malley, doesn't believe reducing the number of economic agencies and organizations will help businesses.

"To have one size fits all is sometimes difficult. To make the business public more aware of the programs is one, thing, but I don't necessarily agree that the melting of all the agencies into once central pot," he said.

"I think each of those organizations do different things."

For example, Malley said the Enterprise network is a great place for budding entrepreneurs to start.

However, he said the onus is always on business people to be resourceful and find what works best for their particular circumstances.

"At the end of the day it's the company's responsibility to take it the next step further," said Malley.

"You can't be totally dependant on somebody else to do that for you."

Malley cautioned that changes should be studied carefully before overhauling the support system that is in place for businesses in New Brunswick.

"I think we are quite fortunate here in Atlantic Canada, and particularly in New Brunswick, that we do have a variety of different organizations that are willing to step up and help businesses with their growth."

Smart grids? Smart idea

johnsgunn — Thu, 08 Oct 2009 08:41:39 -0300

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Telegraph-Journal, Published Wednesday October 7th, 2009

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http://telegraphjournal.canadaeast.com/rss/article/815999

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If you had the opportunity to be part of the Internet revolution at its inception, would you take it?

Barring the invention of a reliable time machine, it's a rhetorical question - but one not that different from a technological choice New Brunswick faces today.

The provincial Department of Energy is looking into developing a "smart grid" strategy. Smart grid technology incorporates communications into the electrical grid, making energy transmission more responsive and interactive. Smart grids allow people to optimize the capacity to generate and transmit electricity, help consumers to reduce waste and cost, and increase the dependability of renewable energy such as wind power.

Smart grid development is well underway in Europe, and it has been hailed as a technology that could revolutionize the energy industry in ways that are comparable to the impact of the Internet on telecommunications. In Canada, Ontario is leading the way, but industry analysts believe New Brunswick has the opportunity to establish a world-class smart grid, if government and industry can coordinate.

New Brunswick already boasts the best electrical grid in the region - the product of years of shrewd development by NB Power. This grid capability, combined with its proximity to the United States, has helped New Brunswick to become the region's energy hub. Whether it maintains this dominant position will depend on aligning with the energy markets of New England and Atlantic Canada.

Smart grid development would allow the province's energy industries to evolve to the next level, in a market increasingly hungry for power from renewable sources. It would help businesses and consumers manage energy use, keeping power costs to a minimum. It would also create opportunities for the information and communications technology sector to join the green energy boom.

It is only a matter of time before smart grids become the standard. Government and industry must assess the technology's potential and devise a strategy for making it work in New Brunswick.

Entrepreneurs lead the way

Rowser — Tue, 06 Oct 2009 10:24:54 -0300

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Telegraph-Journal, Published Saturday October 3rd, 2009

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http://telegraphjournal.canadaeast.com/rss/article/812099

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Business leaders and business analysts have weighed in on the need for more entrepreneurialism in New Brunswick. The objective is to create an environment in which business start-ups lead to the growth of competitive, growing companies headquartered here.

An entrepreneurial environment cannot be created simply by shuffling the funding programs at Business New Brunswick. It requires a broad commitment from politicians, businesspeople and the public to stop thinking of government as the engine that drives economic activity.

Creative and talented people generate economic growth, and will do so in New Brunswick, provided they see business as a viable career option, can develop leadership skills and access investment capital, and aren't driven out of the province by poor public policy.

Leaders must assess why New Brunswick has many small businesses but fewer firms that grow into regional, national and global leaders. Access to capital has played a role, but so has the calibre of public education and the decisions government has made regarding development funding.

A province with low literacy and limited commercial lending, where businesses are given government grants and loans to compete against their neighbours, is going to have greater difficulty fostering a dynamic economy. The challenge before government is to apply support where it will have the greatest long-term impact - in education, in efforts to increase access to capital, and in policies that foster private-sector development rather than stifling it.

The business community needs to step up, too. In a competitive, commercial environment, business growth depends upon business people. If you want your company to succeed, you need to be shrewd, you need to be excellent, you need to protect your bottom line and you need to play to win. Some small businesses have modest goals, and that's fine; a dynamic economy has many levels. But it's the businesses that grow and spin off and reinvest that generate new jobs and new revenue.

For the spirit of entrepreneurialism to grow and prosper, New Brunswickers need to see business ownership and business development as viable options.

Business is a creative endeavour, where hard work, intelligence and innovation can be richly rewarded. There are inspiring examples of this in New Brunswick, from family-owned businesses such as Cooke Aquaculture and cymbal maker Sabian Ltd. to firms in information technology.

We need to start celebrating business excellence for what it is - a product of entrepreneurialism, and a hallmark of what can be achieved through private initiative.