Ontario needs to do more for wireless and digital sectors: MEIC report

Ontario has the potential to be a world leader in wireless and mobile, according to a new report from the Mobile Experience Innovation Centre (MEIC). But the government along with key industry and academic stakeholders first have to do a better job of working together to prepare the province for the coming mobile revolution. Released last week, the report Innovation and Insight: Mapping Ontario’s Mobile Industry, says both Ontario and Canada are missing a prime opportunity to leverage a growing sector to even greater success. “Solutions are within reach,” says the report, noting that “future potential must be realized by developing convergence strategies for Ontario’s entrepreneurial and educational activities.” Referring to it as a call to action, Sara Diamond, chair of MEIC and president of the Ontario College of Art and Design, says the report provides some background on what Ontario businesses see as challenges and opportunities, but also offers information on where Ontario and Canada stand in relation to other countries. More importantly, she adds, it provides recommendations on a way forward. “ be more effective in a really accelerated marketplace in making sure that we keep the growing strength in Ontario industries and work together in a cohesive way from the private sector to educational institutions to public funding entities to position first Ontario, but also Canadian capacity, back at a world-class level,” she tells Report on Wireless. The report points a finger squarely at the wireless carriers, government and funding institutions for making it difficult on Ontario’s wireless sector. “The current Canadian context is lacking in terms of preparedness to embrace the next generation of networked enterprise, educational and cultural activity – data rates, though becoming more accessible, are still quite high compared to global standards, mobile penetration is lagging, and access to capital, distribution and markets are the largest inhibitors to local entrepreneurial growth in this sector,” reads Innovation and Insight. Recommendations in the report can be boiled down to four key themes: better access to capital, the creation of a “deal making environment” for access to international markets, facilitating knowledge/technology transfer and commercialization, and training and learning support initiatives in the college and university community. Access to capital has been for the last number of years a major barrier for entrepreneurs and smaller business. Funding has primarily been project-based funding, says Diamond. While she acknowledges that this type of funding has been useful for small businesses, it doesn’t give them the ability to capitalize to a level where they can be successful. The report also points to the Investment Accelerator Fund (IAF), a creation of the Ontario Centres of Excellence and the Toronto-based MaRS Discovery District, as an effective financing vehicle. The IAF board consists of venture capitalists, angel investors and industry, which enables balanced funding decisions and demonstrates an effective partnership between government and other members of the funding eco-system. Innovation and Insight even goes further suggesting that the funding dichotomy should be even broader, including participation from banks, VCs, multi-national companies and other organizations. “While the government may play a role today in encouraging investment from established businesses into the mobile industry, government funding initiatives have massive amounts of unrealized potential,” reads the report. “Our suggestion is that government ministries and associations aggregate their investment budgets and apply them with the help of established players such as the banks or VC community. By focusing on the pillars of reach, engagement, and scope, government funding initiatives have an opportunity to significantly impact the pace of innovation within the mobile industry in Ontario. Rather than setting up the tools and infrastructure needed to properly deploy its grants and other forms of financial stimulus, the government should focus on developing win-win partnerships with established channels.” Diamond adds that funding needs to be delivered in a manner that addresses the new realities of the rapidly evolving landscape. “What we’re looking at as needed is little bursts of funding very early and for really smart design sketches coming out of emerging entrepreneurs or entrepreneurs moving into this sector that can get to the point where they can be pitched, analyzed by funds like the BlackBerry Fund and then taken to the next level for investment,” she explains. “We need stages of support in an incredibly fast paced market.” The MEIC chair and OCAD president is hopeful the government will act on the recommendations on the report and direct some of the new money coming from the provincial government to support building mobile and wireless capacity in Ontario. “We’re hoping that there will be some additional investment in capital and physical infrastructure. feel that we need a physical demonstration site where you can bring potential buyers and also use it as a test bed for the technology,” Diamond says. “And we need that in downtown Toronto, which is the epicenter of a lot of this business activity.”

Ontario needs to do more for wireless and digital sectors: MEIC report

News | May 26, 2009

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