A few
weeks ago the directors of ABCtech met at a strategy retreat in Calgary. I want
to share what we discussed because it's actually a strategy for technology in
Alberta as a whole. We would like to widen the discussion to get your
perspective on some of our subversive thoughts (ie, please comment below!)
The
Alberta Council of Technologies sees a future where Alberta has a
much more diversified economy, with technology industries forming a strong sector.
It's a tall order given ABCtech's almost complete lack of resources, but then
again maybe resources (for ABCtech, or Alberta) are not actually the problem.
Perhaps
growing Alberta's technology industry is not about money or tools or resources
of any kind. It's actually about us. We, the smart, hard-working people of
Alberta, are getting nowhere with technology industry creation because we're
doing it wrong. Maybe we're just having the wrong conversation.
Let's
examine the assertion that we are "getting nowhere"' because some in
our industry take exception to this idea. Surely all the activity and startup
companies means great things are underway. We've had successes. "See?
We're getting somewhere!".
I don't
want to dampen enthusiasm or minimize our victories, but let me defer
to the Honourable Anne McLellan, who spoke at the 2012 TEC Venture Prize awards
in Edmonton. If you don't know Anne McLellan, please google her; she knows what
she's talking about.
To
paraphrase, Ms. McLellan told that gathering that we know we are not getting anywhere
because Alberta-based technology companies form a minuscule part of our
economy. After more than 30 years of efforts to improve this, the Return On
Investment for this entire sector in Alberta is essentially zero. We've had a
few gains, but our losses cancel out our wins.
And that
is essentially the problem. ROI=0. A successful industry creates wealth, and
ours hasn't. Apparently, we're doing it wrong, and we're getting nowhere.
Lest we
rush to discredit Anne McLellan, others have said the same thing. Todd Hirsch,
Chief Economist of the Alberta Treasury Branch made the same point at the
ABCtech 2012 AGM. Peter Hall, Chief Economist with Export Development Canada
said it at our 2011 AGM. Somehow, despite all the activity, we are not creating
wealth from technologies in Alberta.
The
purpose of this blog series is to examine the ROI=0 problem, and if I may be so
bold, fix it. (Aim high, because you'll
never hit higher than you aim).
ABCtech's
solution, which I will be leading you through and asking your opinion over the
coming weeks, is the "TIP Alberta Strategy". TIP refers to
"Technology, Innovation and Productivity", but also evokes a tipping
point. We need to tip Alberta into a strong local technology industry. Technology is the tool, Innovation is the
process, and Productivity is the benefit. But more on that later.
The
guiding theme of the Strategy, central to the ROI=0 problem, is "Create
Value Here". Value creation is the central problem in technology
commercialization because shiny new widgets are only valuable if the customer
says so. If we create value for customers, customers buy our creations. If customers buy our creations, we acquire wealth,
and ROI rises above 0. That's what we want.
Painfully obvious, and yet we are not doing it. For decades we have not been doing it.
So what
do you think? Can we create a strong technology industry in Alberta? Is ROI=0
the right problem? Is Create Value Here the right solution? How should we go
about this? This is an interactive blog, so please comment below!
