Government of Canada
Summit Report—Mauricie And Centre-duQuébec Regions
Summary of Discussions and Links to National Priorities
Contents
Part I : Summary and Action Plan





Knowledge Performance
Skills
The Innovation Environment
Strengthening Communities
Action Plan
Part II : Full Report
A.
B.
C.
D.
Introduction
Profiles of The Regions of Mauricie and Centre-du-Québec , Mauricie , Centre-du-Québec
Event Report
Workshop Reports
1. Workshop 1: Energy and Environment
2. Workshop 2: Information Technologies
3. Workshop 3: Pulp and Paper
E. Conclusion
F. Suggestions for Governmental Solutions in The Area of Innovation
Part I :Summary and Action Plan
Knowledge Performance
Encouraging Canadian firms to reap more benefits from creating knowledge and bringing
ideas to market. It also means increasing R&D investment in Canada by all sectors.
National Priorities
Local Priorities

Address key No disagreement on this national priority and related themes.
challenges for
the university Local priority: Ensure basic funding for universities and promote interresearch
university agreements.




environment. Local priority: Increase links between universities and companies, notably
by
Support the
indirect costs
 Creating a centre for the emergence of new products (universityof university
enterprise) to reduce development and commercialization costs; and
research.
 Involving companies earlier on in the development of research
centre projects.
Leverage the
commercializa No disagreement on this national priority.
tion potential
of publicly
Local priority: Boost R&D by awarding research contracts based on
funded
partnerships between universities, research centres and industry.
academic
research.
 Government as major donor
 Government as purchaser
Provide
 (e-procurement)
internationally
competitive
No disagreement on this national priority and related themes. Many local
research
priorities were proposed in the workshops.
opportunities
in Canada.
Local priorities:
Renew the
Government
of Canada's
science and
technology
capacity to
respond to
emerging
public policy,
stewardship
and economic
challenges and
opportunities.
1 - Strengthen the links between major economic players in the community.
2 - Support the development of new kinds of businesses (social economy,
self-employment).
3 - Obtain long-term commitment from government and other stakeholders.


Alliances with major manufacturers
Partnership with Hydro-Québec and the Hydrogen Research
Institute.

Encourage
innovation
and the
commercializa
tion of
knowledge in
the private
sector.

Provide
Local priorities:
greater
incentives for 1 - Build on the region's strengths.
the



commercializa 2 - Create a strong culture of innovation throughout society.
tion of worldfirst
 Increase the competitiveness of paper-producing regions.
innovations.
 Encourage the start-up of new enterprises.
Provide more
incentives for
 Position the region as a leader in hydrogen technology.
small and
medium-sized
 Create an integrated pulp and paper centre.
enterprises
(SMEs) to
Local priorities:
adopt and
develop
1 - Increase the dissemination of information and delivery of coaching.
leading-edge
innovations. 2 - Improve present programs, adapt them to the current environment and
facilitate access to them.
Reward
Canada's
 Create a single window for innovation assistance and coaching.
innovators.
 Create a technology and strategy watch system.
Increase the
supply of
No disagreement on this national priority.
venture capital
in Canada.
Agreement with this national priority.
Local priorities:
1 - Make funding available in the regions and to companies of all sizes.
2 - Innovate with respect to financing.

Lack of start-up funds.

Financing in accordance with market opportunities.

Providing financing right through to project completion.

Access to capital for enterprises that focus on technology.*
---------* Recommendation made outside the summit in the development plans for
the region. See the region's profile at:
http://www.innovation.gc.ca/gol/innovation/site.nsf/en/in04251.html#link32
Skills
Ensuring that in years to come, Canada has enough highly qualified people with the skills for
a vibrant, knowledge-based economy.
National Priorities
Local Priorities
 Produce new graduates.
No disagreement on this national priority and related
themes.
 Provide financial incentives to
students registered in graduate
Local priorities:
and post-graduate studies
programs.
1 - Improve the match between programs in educational
institutions and the need of enterprises.
 Create a world-class scholarship
program of the same prestige and 2 - Attract and retain skilled labour.
scope as the Rhodes Scholarship.
 Recruit and retain researchers in the regions.
 Establish a cooperative research
program to support graduate and
 Stem the exodus of students to major centres.
post-graduate students.
 Attract graduate students to the region.
 Award financial incentives for advanced studies
 Modernize the Canadian
and tailor them to the regions.
immigration system (from
 Develop ways of dealing with the drop-out
Knowledge Matters: Skills and
problem.
Learning for Canadians).
 Increase industry's involvement in the learning
process.
 Maintain its commitment to
 Promote technical training.*
higher immigration levels and
work toward increasing the
No disagreement on this national priority and related
number of highly skilled workers. themes.

Diversify the pool of skilled
workers.

Use a redesigned temporary
foreign worker program.
Local priority: Promote communities as a cradles of
knowledge.

Establish an exchange program for national and
international researchers and students.
--------* Recommendation made outside the summit in the
development plans for the region. See the region's
profile at: http://www.innovationstrategy.gc.ca
The Innovation Environment
Modernizing our business and regulatory policies to support and recognize investment and
innovation excellence.
National Priorities
Local Priorities


Ensure
effective
decision
making for
new and
existing
policies and
regulatory
priorities.
Support the
creation of a
Canadian
Academy of
Science.
No disagreement on this national priority and related themes.
Local priorities:
1 - Compare Canada, Europe and the United States.
2 - Adapt regulations to new sectors.







Undertake
systematic
expert
reviews of
existing
stewardship
regimes.
Ensure that
Canada's
business
taxation
regime is
internationall
y competitive.
Brand Canada
as a location
of choice.
Standardize eligibility criteria for various government programs and
services.
Standardize the intellectual property policies of Canadian
universities and harmonize them with those in the United States and
elsewhere.
Increase policy harmonization among the various levels of
government.
Pursue complementarity and consistency of action with respect to
labour, and establish new evaluation mechanisms in this respect.*
No disagreement on this national priority.
Local priorities:
1 - Adjust and simplify the criteria for research and development tax credit
programs.
2 - Harmonize policies across jurisdictions.
No disagreement on this national priority.
Local priority: Use various means to promote the communities' advantages
(welcome foreign students, partnerships, exchanges).

Expand the region's international reputation and strengthen
exchanges among northern cities and regions, especially those in
North America, by signing international partnerships, recruiting
more foreign students, and intensifying regional cooperation.*
---------* Recommendation made outside the summit in the development plans for
the region. See the region's profile at:
http://www.innovation.gc.ca/gol/innovation/site.nsf/en/in04251.html#link32
Strengthening Communities
Supporting innovation at the local level so that our communities continue to be magnets for
investment and opportunity.
National Priorities
Local Priorities
 Support the
No disagreement on this national priority.
development
of globally
Local priority: support technology clusters in the communities.
competitive
industrial
 Major centre for hydrogen.
clusters.
No disagreement on this national priority and related themes.
 Strengthen the
innovation
Many local priorities were identified in the workshops.
performance
of
Local priorities:
communities.
1 - Organize local stakeholders more effectively so as to create a regional
 The
innovation network.
Government
of Canada will 2 - Consolidate and diversify community activities.
consider
providing
 Identify a local resource (leader or facilitator) able to guide
funding to
stakeholders and deliver front-line support to building an innovation
smaller
system for the region.
communities
 Develop an integrated waste management system.*
to enable them
 Promote the region's technological potential and accelerate the
to develop
development of entrepreneurship in emerging fields.
innovation
strategies
The topic of broadband service was not discussed at the summit, probably
tailored to
because the region is well served in this respect.
their unique
circumstances ---------.
* Recommendation made outside the summit in the development plans for
 As part of this the region. See the region's profile at:
effort, the
http://www.innovation.gc.ca/gol/innovation/site.nsf/en/in04251.html#link32
Government
of Canada will
work with
industry, the
provinces and
territories,
communities
and the public
to advance a
private sector
solution to
further the
deployment of
broadband
service.
Action Plan
Summit participants chose three themes. Workshop discussions were held on energy and the
environment (hydrogen), information technology and pulp and paper.
The region's vision and three main challenges are:
1. Vision

To offer Canadians sustainable development and a high quality of life.
2. Challenges

Take carefully targeted action to remedy the current and anticipated shortage of highly
skilled labour.

Improve assistance to employers by setting up a single window for government services and
offering local coaching to proponents developing projects.

Plan long-term government strategies and programs independent of political agendas to
promote stable assistance for enterprise.
Part II : Full Report
Introduction
The government consultation on Canada's Innovation Strategy is an initiative of the Honourable
Allan Rock, Minister of Industry, and his colleague the Honourable Jane Stewart, Minister of
Human Resources Development. The goal of the exercise is to inform Canadians and to receive
feedback from them about the orientation of the Government of Canada on the subject of
innovation.
The Four Major Goals of Canada's Innovation Strategy


Knowledge -- Encourage Canadian enterprises to make better use of the creation of
knowledge and the commercialization of ideas. This means that all sectors should invest
more in research and development in Canada.
Competence -- Ensure that in the coming years Canada will have sufficient numbers of
highly qualified persons to ensure a dynamic knowledge-based economy.

Innovation Environment -- Modernize our supervisory and regulatory structures in order to
encourage excellence in innovation and investment.

Reinforcement of Communities -- Encourage local-level innovation so that communities
remain poles of attraction for investment and opportunity.
Profiles of the Regions of Mauricie and Centre-du-Québec
Mauricie
The Mauricie region, right in the heart of the St. Lawrence Valley, between Quebec City and
Montreal, covers an area of 40,000 km2. The region offers several advantages in the areas of
economic and cultural life.
The population, estimated at 261,000 persons, has gone down 1.6 percent during the last five years,
is dispersed among 44 municipalities, and is particularly concentrated in Trois-Rivières and
Shawinigan, the major urban centres. The population is 96 percent Francophone, with 2.8 percent
Native peoples.
This region has the oldest population in Quebec, with an average age of 41 years, compared to a
provincial average of 38 years.
Mauricie is the pioneer industrial region in Quebec. This characteristic has greatly influenced its
industrial structure as well as its evolution. The abundance of natural resources has facilitated the
choice of economic activities in the pulp and paper, furniture-making, metallurgical and chemical
industries, and in the agricultural sector.
The manufacturing sector, through its 827 enterprises, provides jobs to 20 percent of the work force.
However, the industrial structure is going through a major transformation, as manufacturing
enterprises are having to manoeuvre in a context of globalization of markets and new technologies.
The pulp and paper sector, characterized by obsolescent production units, has had to invest heavily
in the areas of the environment, automation and modernization of production processes, in order to
keep up with the rhythm imposed by international competition. Forest resource exploitation activity
is tending toward diversification, especially through recreational tourism activities.
The professional structure has ties with high-performance industrial sectors, whereas jobs are
concentrated in the production, processing, transportation and machinery sectors, as well as public
service utilities. On the other hand, professions connected with management, business, finance,
administration and the sciences play a smaller role in the region.
According to statistical data, Mauricie went through a difficult period in the last few years, and
despite efforts toward diversification, the region still depends essentially on the vigour of the
manufacturing sector.
Personal income in 1999 was $20,707, compared to the Quebec average fo $23,800. The
unemployment rate in the region went from 13.2 percent in 1996 to 11.7 percent in 2001. Despite
this improvement, unemployment is still high compared to the Quebec average of 8.7 percent.
Centre-du-Québec
The region of Centre-du-Québec was officially created in 1997, and it covers an area of nearly 7,000
km2 on the south bank of the St. Lawrence River, across from the region of Mauricie. The
population is estimated at 223,500 persons, of whom half live in Drummondville, Victoriaville,
Nicolet and Bécancour. The region's demographic data are essentially similar to the Quebec
averages.
The industrial structure of the region, however, is very different. Commodities production employs
42.6 percent of the region's workers, compared to a Quebec average of only 26 percent. Both
agriculture and the bio-foods sector are very prevalent. The manufacturing sector, initially
traditional (wood, furniture, pulp and paper, textiles) has diversified significantly in the last two
decades, notably in the machinery, metal products, rubber and plastics, and transportation
equipment sectors.
It should be noted that for the last decade, the professional, scientific and technical services sector
has experienced the strongest growth of all the sectors in the region. The professional structure of
the region is in the image of its industries, in that jobs tied to the primary processing of resources
continue to grow at the rate of 1.8 percent per year, whereas elsewhere in Quebec they are declining
at the rate of 0.9 percent annually.
The unemployment rate is 9.4 percent, which is 0.7 percent above the Quebec average. It should
also be noted that -- contrary to several other regions of the province -- the population of Centre-duQuébec has grown in recent years.
Event Report
The summit for the regions of Mauricie and Centre-du-Québec took place in Trois-Rivières on
Thursday, June 20, 2002, as part of a series of 30 regional meetings across the country on Canada's
Innovation Strategy. The consultation will end in November 2002 with a national summit in
Toronto. This meeting took place at the Delta Hotel and Conference Centre in Trois-Rivières, and it
brought together 94 participants from the region's economic organizations, educational circles and
private enterprise.
The summit was jointly organized by Canada Economic Development and Industry Canada, in
partnership with the Community Futures Development Corporation of Nicolet-Bécancour, and the
Technopôle Vallée du Saint-Maurice, and with the collaboration of Human Resources Development
Canada. Highlights included a speech given by Tom Brzustowski (NSERC) and the participation of
the rector of the University of Quebec at Trois-Rivières.
Mr. Pierre Reid, Associate Deputy Minister at Industry Canada, read the keynote address of the
summit.
Regional Priorities and Challenges
The summit for Mauricie and Centre-du-Québec envisaged these regions' future as a function of
their pulp and paper industry and primary processing traditions, as well as in terms of innovation in
the energy and high technology sectors. The discussion in the three workshops dwelt on Energy and
the Environment (hydrogen), Information Technologies, and Pulp and Paper.
At the end of the workshops, three principal challenges emerged from the discussions:
1. Remedy, through targeted measures, both the present and the anticipated shortages of highly
skilled labour.
2. Improve assistance given to entrepreneurs through a one-stop government services centre,
and offer personalized coaching to promoters who are developing projects.
3. Plan long-term government strategies and programs, irrespective of the political agendas of
governments, in order to provide stability in business assistance offers.
Workshop Reports
1. Energy and Environment
Animator: Mr. Rufin Djaozandry, Technopôle Vallée du Saint-Maurice (Technopôle)
1.1 Skilled Labour
a) Challenges

Recruit and retain researchers in the region and attract foreign students

Set up structures and infrastructures

Offer graduate-level training
b) Solutions

Better financing for the universities

Better financing of research

Financing for infrastructure projects

Obtain a national vocation for the University of Quebec at Trois-Rivières (UQTR) in the
area of hydrogen research
c) Priorities

National and international exchange programs for researchers and students

Develop infrastructure projects
d) Next Steps

Interuniversity agreements
Responsibility: UQTR

Identification of hydrogen-related projects
Responsibility: Hydrogen Research Institute (HRI), Technopôle

Recognition of the International H2 Pole
Responsibility: Centre National du Transport en Commun, UQTR
1.2 Emergence, Adoption or Commercialization of Innovation
a) Challenges

Create association and synergy among regional forces (Hydro-Québec, HRI, etc.)

Mobilize business managers

Conclude alliances with major manufacturers
b) Solutions

Government can play a "contract giver" role in order to stimulate and accelerate the adoption
of the needed technologies
c) Priorities

Establish contacts with decision makers

Prospect for investments on the international scene

Get spin-offs started
d) Next Steps

Establish contacts
Responsibility: Technopôle, HRI

Research investors
Responsibility: Quebec and Embassies

Accelerate launching of spin-offs
Responsibility: UQTR, Technopôle
1.3 Commercial and Regulatory Environment
a) Challenges

The present regulations are not adapted to the hydrogen domain

Lack of expertise in the area of commercialization
b) Solutions

Form alliances with major commercial enterprises (GM, Shell, Texaco, etc.)

Put regulations in place that favour the use of hydrogen

Set up a support program to develop better awareness of hydrogen technologies
c) Priorities

Get involved in the regulatory organizations
d) Next Steps

Participate in standardization committees
Responsibility: HRI, Bureau de normalisation du Québec

Establish contacts with major firms
Responsibility: Technopôle

Develop a lobbying strategy
Responsibility: Industry Canada
1.4 Action Plan and Strategic Positioning
a) Challenges

Set up a strategic intelligence system

Position the region as major pole in the domain of hydrogen
b) Solutions

Work with partners to make the Mauricie region known as a major technological centre in
the area of hydrogen

Create a strategic and technological intelligence unit
c) Priorities

Urgent need to act in order to become competitive with industrial developments in Europe
and the United States
d) Next Steps

Strategic action plan on H2
Responsibility: Technopôle, UQTR

Financing of the action plan
Responsibility: Technopôle, UQTR

Start-up spin offs
Responsibility: Future Carbon, Technopôle

Regional consensus
Responsibility: Technopôle, UQTR
2. Information Technologies
Animator : Mr. Éric Lacroix, Director of the Centre francophone d'informatisation des organisations
(CEFRIO)
2.1 Emergence, Adoption and Commercialization of Innovation
a) Challenges

Lack of awareness about programs and services

Inadequate research and development, due to lack of public or private financing

Financing less available for middle-sized enterprises, compared with small or large
enterprises

Lack of seed funds

Short window of opportunity

Delays in projects caused by political announcements
b) Solutions

Make seed money available

Ensure impartial follow-through and coaching, not influenced by politics
2.2 Availability of Skilled Workers
a) Challenges

Emigration of students toward urban centres

Lack of specialized expertise (master's and doctoral level)

Absence of financial incentives for graduate studies (economic weakness in the community)
b) Solutions

Take measures likely to attract students to the region

Subcontract information and communications technology projects from outside the region

Promote the image of the region by emphasizing the quality of its businesses, its
professional challenges and the quality of life

Develop models to fight against the school drop-out phenomenon
2.3 Commercial and Regulatory Environment
a) Challenges

The region's enterprises are in a defensive position due to deficient financing

University regulations and financing norms have a dissuasive effect

The region's industrial culture is one of manufacturing rather than innovation

Multiplicity and complexity of programs

The research and development credit program is difficult for small enterprises to access

Immigration rules represent a barrier to the hiring of foreign skilled workers
b) Solutions

Ease the regulatory burden for financing and set up a one-stop system

Ensure better networking among support organizations

Encourage the first initiatives of entrepreneurs and promoters

Facilitate access to tax credits
c) Action Plan

Create a new centre for the emergence of products (universities and enterprises) in order to
reduce the development and market launching costs

Improve the current programs, adapt programs to the conditions of the enterprises and ease
access conditions

Prepare a multi-sectoral table

Develop a strong culture of innovation (training and coaching)

Set up a local service point for support programs

Revise the evaluation of the Mandatory Inventory Adjustment model

Increase the availability of venture capital and develop a start-up fund (public and private)
3. Pulp and Paper
Animator : Mr. René Gélinas, Professor, University of Québec in Trois-Rivières
3.1 Emergence, Adoption and Commercialization of Innovation
a) Challenges

Research and development budgets are very limited within enterprises (only 1 percent of
gross revenues in the region, compared to 5 percent in the Scandinavian countries)

Lack of perspective and long-term commitment on the part of industry
b) Solutions

Improve support given to industries locating to the region (regional)

Increase the competitiveness and performance of paper manufacturing regions (national)

Establish fiscal incentives to research and development (national)

Seize opportunities quickly
3.2 The Work Force
a) Challenges

Difficulty of renewing skilled labour

Low level of worker mobility

Negative images and attitudes toward the profession
b) Solutions

Solve the labour force shortage through industry involvement in an apprenticeship process

Increase partnerships among teaching institutions at all levels

Promote the sector among youth as a way of upgrading the profession

Make efforts to upgrade the image of the pulp and paper industry on the national scene
c) Priorities

Accelerate training to prepare the next generation of workers

Raise the image of the industry

Promote the attractions of Mauricie (Quality of life) to attract skilled persons to the region

Work on the requirements for the profession
d) Action Plan

Creation of an Integrated Pulp and Paper Centre (CIPP)
Conclusion
These two regions together constitute the geographic heart of Quebec, and they are, in many
respects, the depositories of the province's industrial history. The exploitation of the forests, wood
processing, building the first big dams, the production of electrical energy, metals processing and
agriculture are the domains of human activity that have forged the ingenious and hard-working
character of the area's population.
The traditional sectors are still the breadwinners, but no one can ignore that the globalization of the
economy is changing the rules of the game considerably. In these sectors, productivity and
competitiveness are the keywords.
It is clear that everybody agrees on giving high priority to the creation of an Integrated Pulp and
Paper Centre, for both the forestry and the pulp and paper sectors. It is also expected that the large
companies will need to make a more significant effort to adapt their technologies and processes if
they want to keep up with the pace being set by the worldwide competition.
What is more, the interveners as a group must demonstrate their will to renew the image of the
industry and make it attractive for youth, who feel that this sector of activity belongs more to the
past than the future. This phenomenon applies also to the entire spectrum of traditional activities,
which are generally slow to adopt all-encompassing innovative attitudes.
Nonetheless, the economic interveners of the region are acutely aware of this reality and they
readily see the adjustments that need to be made, not only to consolidate the traditional strengths,
but to develop new industrial niches in the sectors of the future.
In this perspective, the community puts forward remarkable diversification initiatives. Emerging
advanced technology sectors, such as new sources of energy (especially hydrogen), and information
and communications technologies are targeted.
The participants at the summit were very attentive to the messages delivered by Canada's
Innovation Strategy. At the end of the retreat, they emphasized the need for an innovation process,
affirmed their will to go in this direction and clearly indicated what they thought the Federal
Government should do as a follow-up to this summit.
Suggestions for Governmental Solutions in the Area of
Innovation
The development of strategic development plans for the regions of Mauricie and Centre-du-Québec
allowed the identification of a certain number of needs and areas for action relating to innovation:
Innovation

Diversify the region's economic base by encouraging secondary and tertiary processing, and
the development of products with a strong value-added aspect;

Promote the energy sector as a strategic pole that holds promise for the region, drawing on
the strength of the specialized establishments active in this area;

Optimize the economic benefits by encouraging centres of expertise to get involved in
technology transfer and enterprise "spawning".

Reinforce and promote research and development in the domain of new energies and the
economy of energy;

Encourage leaders of industry to adopt new business practices in the areas of production
technologies and equipment innovation;

Support all twinning, mentoring and other types of industrial collaboration; and

Improve access to capital, especially to venture capital for modernization and the
technological conversion of enterprises.
Competitiveness of Enterprises

Help enterprises adopt new quality standards and sensitize them to competitive thinking;

Foster rapprochement (matching) among enterprises, research centres and specialized
services;

Encourage relocation of secondary processing enterprises to the region, especially in the
domain of light metals;

Encourage enterprises to adopt strategies based on industrial consensus and joint action;

Sensitize and inform industrialists about penetration methods for international markets, and
support them in their export management efforts.
Leadership

Upgrade the region's technological potential and accelerate the development of technological
entrepreneurship associated with emerging domains;

Facilitate new entrepreneurs' access to financing, and to coaching and follow-through
services;

Support the development of new types of enterprises (self-employment, social economics);

Ensure media coverage of enterprise success stories;

Encourage exchanges among entrepreneurs and future entrepreneurs.
Environment

Develop integrated waste management by supporting recovery and recycling enterprises;

Support environmental research;

Ensure the long-term sustainability of natural environments.
Tourism

Consolidate the tourism industry as a function of the evolution of the sector on the global
scene, by developing new products (ecological tourism, farm tourism) and better
commercialization;

Convert abandoned railroad facilities for recreational purposes;

Develop and promote the region's historical and industrial heritage;

Attract economic interest centres by developing a conventions industry, and complete
construction fo the region's accommodation complexes for this purpose;

Ensure a tight meshing between the culture and tourism sectors.
Education

Encourage the educational institutions to consolidate existing programs and to develop
specific niches to address the region's needs;

Develop partnership between industry and the education sector in order to facilitate the
placement of youth in the job market;

Upgrade and enrich professional and technical training.
Forestry Products

Develop training programs adapted to the specific needs of the forestry sector interveners
and improve the conditions offered to the forest workers;

Develop the processing of forest products, encourage the emergence of forest and agroforestry farms, and increase the economic benefits of high value-added products;

Develop fiscal incentives to highlight woodlands;

Encourage work force training, specialization and upgrading.
Agri-Food

Support the development of organic farming and develop the processing of organic foods;

Encourage the development of this sector on the basis of sustainable development principles;

Maintain and develop the maple-tree sector;
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Promote the region's products by launching a repertory of these agri-food products and
developing a promotional strategy