C HAPTER 7
S U M M A R Y Canada is falling behind developments in other industrialized countries and using outmoded means, including a low dollar and a reliance on base commodities, to maintain its competitive position. Meanwhile, we face major environmental challenges, including that of meeting our Kyoto Accord commitments. However, in developing technological innovation to deal effectively with environmental challenges, Canada faces gaps in funding intensity. Sustainable Development Technology Canada (SDTC) has been formed to bridge these gaps and provide funding continuity. There is a great opportunity for angel investors and SDTC to work together as agents of change to share risks and enhance returns in the sustainable development technology area.
C REATING I NVESTMENT O PPORTUNITIES T HROUGH T HE SDTC by Dr. Vicky Sharpe
INTRODUCTION
As we move into the millennium, Canada is faced with two enormous challenges. The first is a significant decline in our nation’s prosperity relative to other industrialized countries. And the second is the need to meet our increasing environmental responsibilities. Both challenges are critical to the well-being of future generations. Our success in tackling them will be affected by how well we develop and employ innovative approaches to common problems. This paper examines some of the key forces shaping our economic future and the nature of the investment climate for new technologies. It also proposes ways in which Sustainable Development Technology Canada can partner with the angel investor community to take advantage of emerging opportunities.
THE FUTURE PROSPERITY OF CANADA There is growing evidence to suggest that Canada is failing to keep pace with developments in other countries, especially the United States. According to the latest Global Competitiveness Report published by The World Economic Forum, Canada now ranks 11 th in the Current Competitiveness Index , far behind Finland, Australia, the United States, and Singapore (Ref 1 ). The report also describes the way in which countries maintain their competitive position. One indicator, the Nature of Competitive Advantage, ascribes a value to how countries maintain their competitiveness. Countries at the top of this ranking are considered creative, innovative and effective. Conversely, a low ranking indicates that a country clings to outmoded and ineffective means to maintain its competitive position. Canada ranks 23rd out of 58.
1 Global Competitiveness Report: Competitiveness and Stages of Economic Development. Michael E. Porter, Jeffrey D. Sachs and John W. McArthur. World Economic Forum and Harvard Business School. October 2001.
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