Edmonton (Alta.) - 1966-UNKNOWN - The Edmonton report on business and travel development (1979-11)

ESSE4 (37017-753:0:

N CD/R) November, 1979 Volume 14, No. 6

Circulation 11,000

Editor, Len Bland

Research Park officially opened

Former Syncrude Leader Honored

Advanced Technology Blasts off unique Opening Ceremonies Edmonton's Research and Development Park officially opened Oct. 4. Opening ceremonies at the site, west of Mill Woods, were triggered from the Four Seasons Hotel, where a laser beam unveiled a monument commemorating the event and the park to the memory of the late Frank Spragins, formerly C.E.O. of Syncrude Canada Limited and a leader in energy research and technology.

The bronze bust of the late Dr. Frank Spragins, former president of Syncrude Canada, Ltd. was unveiled during the luncheon by his widow Mrs. Nell Spragins, Mr. Neil Lund, (RIGHT) corporate Vice-President, Research and Development, Syncrude Canada, cited Mr. Spragins' contributions to the university, his company's research program, his dedication of the Edmonton Research and Development Park, and officially dedicated the park to the memory of his former president.

A fact- filled audio-visual program, describing the essence of Edmonton's Industrial Park, climaxed the official opening following a luncheon attended by representatives of the three levels of government, media, park officials, and a cross-section of the business COMMLInity. Viewings of this presentation au e possible by arrangement with Mr. Gordon Haig, 14320 - 63rd Avenue, Edmonton, Affaerta T6H 1S4 (403) 435-2042.

THE CITY OF EDMONTON BUSINESS DEVELOPMENT DEPARTMENT is set up specifically to provide information and practical assistance in the following areas:

• MARKET RESEARCH • BUSINESS TREND ANALYSIS • PLANT FEASIBILITY STUDIES • • SITE LOCATION SERVICE • NEW PLANT PUBLICITY • TRAVEL & RECREATION DEVELOPMENT • without obligation and in the strictest of confidence.

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THE

NTON

Opening is a "Most Important Event" says City Mayor "There is no question in my mind that this will mark a new and most important event in the history of the city.

It is fitting that this development has occurred during our 75th Anniversary. I am again pleased to announce this dedication as a project of our 75th Anniversary celebration.

As you watch the future development of this park, even in the very near future, I think there will be some amazement on the part of those who may well have doubted that we should be going in this direction.

I am convinced that this is a direction that we should be proceeding. With cooperation from the University of Alberta (which is something that sometimes we take for granted) we note the great amount of research that is going on there and we also see the dedication of people such as Dr. Gunning and his colleagues at the University.

Putting that expertise to work and applying that research out in the real world is something that they are looking forward to as a continuing program. It is also one, of course, that the City of Edmonton is looking forward to as well as the beneficial economic impact that this applied research will have on our city.

My congratulations to the committee for the hard work and dedication that they have done to bring the events of this morning into fruition."

(Cec) Purves, Mayor

EDITOR'S NOTE The Edmonton Research and Development Park has been developed as a result of some ten years of ongoing study by the City of Edmonton and the U. of A. More recently, advice from Stanford Research International and input from experts within industry have helped to formulate the final development criteria for the Research Park. This report provides the background to the establishment of the Research Park and information on why Edmonton will become the location for the development of the largest research site in Western Canada.

Adjacency to Major University is an Essential Ingredient

In 1977-78, there were 1,620 engineering students enrolled in the five departments-of the engineering program under the instruction of 129 faculty members with 159 students enrolled in masters or doctoral programs. Proof of the on-going success of the Faculty of Engineering at the University of Alberta is shown by the frequency which private industry contracts the faculty to do experimentation and testing.

For the same year, 3,876 students were enrolled in the Faculty of Science under the instruction of 352 faculty members. 483 students were enrolled in Science Master and Doctoral Programs.

The Faculty of Medicine at the university has earned the reputation of being one of the foremost Canadian Universities in the areas of cardiology, biochemistry, immunology, burn research and treatment, cancer research and treatment and computor assisted and instructed medicine. In 1977-78, 1,655 students were enrolled in the University's Medical Programs under the instruction of 952 full and part time faculty members.

In 1978, the University of Alberta research funds totalled $17,270,886. This money was put successfully to work maintaining this University's standards of excellence and allowing its students to gain an unparalleled education. Veterans of research park enterprises also claim that the presence of skilled manpower in an area is a must for a successful research facility.

"A major element in the success of a research park is its close proximity to a major university" say the experts.

Edmonton has the third largest university in Canada and it's one of the best! The campus is conveniently located within the city limits, less than three kilometers from Edmonton's business centre. The oldest and largest of Alberta's four universities, the University of Alberta is a publicly supported coeducational institution made up of 18 faculties. As of 1977-78, the University had 19,491 full time students and 11,275 part time students. Of the total full time students, 12,306 or 63.2% were from the Edmonton area, an important number when considering that most, upon graduating, will continue to live here and apply their talents and expertise to the local market. A valuable contribution not only to the advancement of this marketplace, but to research endeavors as well.

The University has 24 major teaching buildings and maintains, among other entities, a library system containing more than 1,750,000 volumes. In addition, the University's major faculties in science, engineering and medicine provide vast potential for professional, personnel and research support resources.

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Quotable Quotes Support Objectives of New Edmonton Research and Development Park ERIC MUSGREAVE, M.L.A. JOHN SHEPHERD, President Canadian Institute for Economic Policy

"Industrial research and development in relation to existing economic conditions are key factors in determining Canada's future in the world market," delegates to an innovation conference were told early this month in Edmonton.

The two day conference sponsored by the Financial Post looked at a variety of topics including innovation and technological marketing. Some of the main issues raised by speakers were the need for development of increased export potential, increased incentives for

domestic projection, technological advancement, protection of Canadian companies and consideration of available markets.

"There's little doubt that strength in the manufacturing sector is crucial to economic recovery. The reality of Canada is that it is a resource-based economy. You can't ignore that. .we must begin to forge links between resource strength and manufacturing cape-

"I'm afraid we, from the city of Calgary, once again have to take off our hats to the leadership of your city, your City council and your Chamber of Commerce and people like Dr. Gunning. I would like to take this opportunity to do a little advertising on behalf of the Alberta Research Council. Many of you know it has a new president, Dr. J. Cloutier who you met earlier. It also has a new political chairman, myself, and soon we hope our Premier will be able to release our long range plan for our activities.

We were able to convince the legislature this spring that it should double the representation of the Universities on the Alberta Research Council so that we now have two members from the Universities. We are hoping for great things in the future!

I should also say we're looking for a new home for our Council.

At present we are in eleven different locations in the city of Edmonton so it's obvious that we would like to find a new home!

JOHN DAVIES,

DR. GEORGE GOVIER,

Vice-President of Research

President

Barringer Research Limited, Toronto

Govier Consulting Services Ltd.

"If Canada hopes to make its mark on world markets it will have to place more emphasis on research and development."

"If we stop learning and if we lose knowledge and credibility we'll never sell anybody anything."

"One of the greatest R and D challenges is to recover the 25 billion barrels of proven oil reserves in Alberta which are unrecoverable with current technology."

"It's possible two or three billion barrels of this could be recovered with methods now used in the laboratory or in pilot plants."

"Another two or three billion barrels might be recovered by new methods yet to be devised."

MICHAEL HODSON% President Sed Systems Inc

"We don't have very good management in industry, universities or government. Where we have to go up a learning curve is not in technology, it's in management. Concerted effort is required on the part of industry, government and educational institutions to improve the- situation."

"High technology is necessary in the future. Companies and government should be gearing up management toward that process."

Eric Charles Musgreave M.L.A., Calgary McKnight

Chairman of the Research Council of Alberta like-minded people, they thrive on continuing exchange of ideas. Also their expertise must be supported by a variety of service industries and equipment

suppliers.

"I advocate a close working relationship between universities and industry in terms of technology transfer."

"Federal research support is needed for Canadian universities. There will soon be a problem of people supply un-

less corrective measures are taken."

MICHAEL GIBBONS, Professor of Liberal Studies in Science University of Manchester, England

ERIC VOGT, Chairman of the Science Council British Columbia

"Research centres are necessary if Canadians are to move the economy beyond the status of secondary or service industry."

"It may be politically expedient to widely distribute scientific expertise by building centres in adjacent towns, but it is a technological disaster.

"Innovators require the stimulation of

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"Industrial research and development is not only possible but very necessary if Canada wishes to get ahead in the world market."

"Cornpetiti n in the world market is more on technological parameters than prices."

"For Canadian companies to take an effective role in technological marketing they must understand the parameters of marketing strategy, export activity and technology transfers."

"M.P. LAMENTS LACK OF RESEARCH" says Bob Gilmour of the Edmonton Journal on the occasion of the official opening of Edmonton's new Research Park Canada lacks the kind of advanced technology vital to a competitive industrial society says David Kilgour, Edmonton Strathcona Member of Parliament.

The country is largely "technologically dependent" because of the scarcity of home-grown research and development (R and D), Mr. Kilgour said. Thursday.

"The lack of R and D — the lack of technological and innovations, and the lack of consequent spin-offs — have had the effect of retarding our industrialization, indeed, our whole well-being as a nation."

Less than one percent of the Canadian gross national product is spent on R and D, compared to about two to three percent by other major industrial countries.

This has caused the $12 billion import deficit Canada chalked up in 1978 in manufactured goods, Mr. Kilgour said at the official opening of the Edmonton Research and Development Park.

"We can't buy research. We have to produce it. If we continue to ask other nations to do our research for us, they will continue to buy our national resources at reduced prices, and sell us the fruits of their research after they have taken their profits."

Mr. Kilgour said, "the changing global situation, especially in the Third World countries, has required the relatively more established, industrialized economies to restructure their industries around high technology processes and products."

"Such items have become of great importance in the world economy, and a country can't maintain its industrial strength unless it can compete in this area," he said.

But "the structure of Canada's international trade simply hasn't changed enough toward higher valued added manufacturing, or to intensified processing of mineral resources."

"Our comparative advantage," said the Edmonton MP, "has remained in raw and semi-processed resources."

However, Edmonton City Commissioner for Economic Affairs, Tom Adams, said "That while Canada's negative balance of payments in past has been offset by the export of unprocessed goods, this can no longer be depended upon."

"In the future, traditional exports such as nickel and oil will not provide an adequate source of foreign exchange."

Mr. Kilgour said that industrialization patterns of developing countries show that among those countries which developed industrial structures, "the resource-rich have industrialized more slowly relying on resource exports for economic growth, whereas resource-poor countries have industrialized much more quickly."

This is true of Canada, he suggested, because the country has historically depended upon plentiful natural resources, and cheap and abundant energy supplies — but not technology — for prosperity.

"Not prodded by necessity, we have not as a people become thinkers and innovators sufficiently."

R and D by Canadian industry is only about 40 percent of the national total — compared to about 65 percent in most industrialized countries, said Mr. Kilgour.

And only about one-third of Canada's scientists and engineers in R and D are employed by the business sector — compared to about 50 per cent for other industrial countries.

The dominant factor in Canadian R and D expansion over the years has been increased federal government expenditure for such work in its own establishments, and to similar activi-

Da\Ad Kilgout Member of Parliament (P.C.)

Edmonton Strathcona

ties in industry and universities, said Mr. Kilgour.

There are signs, however, that Canada is changing its lamentable R and D research record." It has responded to new and growing areas of global R and D in the fields of energy production and new medical technology and has initiated, with considerable success, R and D in areas of laser, optic fibre, and micro-circuit research, as well as in nuclear technologies."

Mr. Kilgour said the new federal Progressive Conservative government hopes to raise R and D expenditures from .9 percent of GNP now, to 2.5 percent by 1985. It hopes to expand the policy of contracting R and D outside the government, and plans to increase the tax credit to 25 percent, from 10 percent.

Social Needs are Met in West's Newest "Culture City" Edmonton's present "quality of life" has been the envy of other cities for years but cities grow and new areas of demand are identified on a continuing basis.

It is said that when you come to Edmonton you can feel the quickening pulse of the city, so alive with social, cultural, sports and entertainment activities. Edmonton has matured into a city which offers a quality of life unexcelled in Canada. Its citizens enjoy excellent theatre, opera, ballet and symphony.

And the numerous amateur and professional sports activities are of such high calibre that Edmonton has been labeled "The City of Champions", and today is considered to be Western Canada's major sports centre. The city's enthusiasms span the 4 seasons. On warm 22° summer days they can breathe in the pure air and stroll through the more than 8,500 acres of parkland which have won Edmonton the coveted "Green Survival Award".

Come winter, Edmonton is the gateway to Jasper National Park and some of the best skiing in the world. To experience everything Edmonton has to offer, the city has one of the most innovative LRT Systems in the country. It presently serves the downtown area and the north eastern parts of the city. Future plans will extend the system into south Edmonton.

This is a city alive with interests that knows how to live the good life - in all seasons of the year.

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High Technology Nucleus is Already in the City Another important factor that must be present for a research park is the availability of existing research. The best in Western Canada is already here.

Located within Edmonton at present are a significant number of laboratories and research organizations. The most prominent of such organizations which provide essential existing research are the University of Alberta and the Alberta Research Council, referred to as A.R.C. The A.R.C. represents one of the largest and most reputable research operations in Western Canada. Its three main branches of earth, industrial and physical sciences and its vast resources make the A.R.C. a significant contribution to research activitites.

In addition, the research operations for Syncrude are located in Edmonton. While based on oil sands development, it is right to assume there is a significant community of interest relating to the development of other energy resources. For Syncrude, and many others, both the University of Alberta and the A.R.C. are valuable aids to progress.

Edmonton has Diverse Manufacturing Sector Canada lags behind other countries of the Western World in the field of research and development. This may explain in part the reason why Canada has a massive trade deficit in manufactured goods.

The opening of the Edmonton Research and Development Park is an important event for all Canadians. This development, when completed, will be the largest research park in Canada, by a magnitude of several times.

It is suggested that the Federal and Provincial Governments review their policies on science, technology, and research and development in the light of the Federal Government Economic Council statement that 4% of the gross national produce be used for research activity to maintain a high quality

of living.

The national need has been for a group to organize and assemble sufficient land, in a conducive atmosphere, and proper location, for research to be done by institutional and private enterprise organizations. This has been accomplished through the vision, leadership and support of the City of Edmonton and its citizens.

Private enterprise must be attracted and assisted by all means available to develop entrepreneurial talents for product development improvement, and diversification.

Flexibility must be a key principle in the areas of administration, finance, marketing, and land pricing.

Another critical factor for the success of a research and development park is industrial diversification.

Edmonton is the fourth most industrially diversified city in Canada, with more than 1,200 manufacturing firms located here. This diversification is essential for the supply and production of component parts and pre-fabricated assemblies for research and development work.

Considering foregoing criteria for success, the continued demand and appreciation for a high quality of life is perhaps one of the most important incentives for the continued development of research industries.

World-Wide Transmission Base Announced by Northern Telecom

David G. Vice Vice-president

Northern Telecom Northern Telecom Canada Ltd., the country's largest manufacturer of telecommunication equipment, has announced the first step of its major expansion program in the west.

The company will establish, in Edmonton, the largest private research and development laboratory in Western Canada.

Mr. David G. Vice, Group Vice President, Transmission, with responsibility for the company's expansion in Western Canada, said he will also locate his headquarters in Edmonton and will direct the world-wide activities of the transmission group from this city. These offices will be located in the Oxford Tower of Edmonton Centre.

The move is to spread, as the company grows, more of its high technology employment across the country.

The research and development laboratory will be a regional facility of Bell-Northern Research Limited, the largest private research organization in Canada and a subsidiary of Northern Telecom Canada Ltd. It is expected to employ up to 250 people within 5 years and will start operating initially in leased premises.

The 60,000 sq. ft. Edmonton building is planned for development in the very near future.

The announcement was made at a luncheon meeting attended by officials of Edmonton's Business Development Department, the Edmonton Industrial Research and Development Park, representatives from the University of Alberta, the Northern Alberta Institute of Technology and other business, provincial and civic leaders on Thursday, November 27th.

Edmontons in the Heart of Development It is generally recognized that the transfer of technology into production is one of the most critical elements of successful research. Edmonton's proximity to Alberta's heavy oil deposits, northern pipelines and coal deposits place it at a decided advantage in terms of accessibility. The monitoring, modification and implementation of new technology requires a close interface between the research facility and the on-site development. At present approximately 91% of industrial investment within Alberta is located north of Red Deer.

Another Edmonton advantage is a downtown airport which provides the corporate executives and research personnel with the exceptional opportunity to gain immediate access to these northern resource development sites.

Synopsis of Research Park Development Policies (as adopted from the SRI Report)

Method of Management — Successful parks are administered by private corporations and foundations separate from universities.

— Coordination of park activities should be centralized during the embryonic stage of development under a "projec/ champion" and later under a professional park manager.

— A Research Park Planning Board consisting of stake-holders in the private, professional, and public sectors should be formulated to plan long-range park development.

— A Tenants' Association should be developed to deal with operations matters such as maintenance, safety and security, library and information sciences, university relations and core facilities.

— The professional park manager, or the "project champion" in the early development phase, will have responsibility for coordination, direction, and control of all park activities.

— Planning and marketing activities of the professional park manager will be funded by the Park Planning Board, and his tenant-related activities will be funded by Tenants' Association dues.

Land Pricing Policy — The sale or long-term lease of land should be attractive to compete with other Canadian parks in attracting "anchor tenants."

— The sale or long-term lease of land to a private developer should be at attractive rates on the condition that he build inventory space where small entrepreneurial firms in science and high technology may lease at competitive rates.

— The market orientation is one of science and technology related to biochemistry, energy, medical, and food science fields.

Marketing — Additional growth industries that would complement the economic needs of Edmonton are: telecommunications, microprocessor technology, electronic instrumentation, and computers and computer peripherals.

— Vigorous park marketing methods should be directed at the major growth industries and those industries related to employment and university strengths.

— Edmonton's offer of inventory space and desire to have innovative science and technology companies come to Edmonton, should be promoted.

Park Size — Edmonton has purchased 160 acres of land which are serviced for sewer, water, gas, roads, etc.

— An additional 160 acres era being considered.

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Dr. Harry E. Gunning Chairman of the Board

Gordon T. Haig Director of Development

The Edmonton Research & Development Park is administered by a Board of Directors consisting of Dr. Harry E. Gunning as chairman, along with twelve prominent civic, academic and industrialist citizens of Edmonton including our Mayor C.J. (Cec) Purves. This Board is responsible to the Edmonton City Council for the operation of the Edmonton Research & Development Park.

Present members of the board are: Commissioner T.E. Adams, B.Comm. M.B.A. C.A. Vice Chairman

Chief Commissioner D.F. Burrows, F.C.O.S. John Barry, B.A.

Secretary

Don Brandt, BA. Dr. Hu Harries,

Gordon T. Haig, P.Eng.

B.Sc. M.Sc. MA.

Allan G. Bleiken

Director of Development

Mayor C.J. (Cec) Purves Alderman Olivia Butti

Dave Kirkbride,

M.Sc.

Dr. G.B. Walker, M.A. Ping.

— An additional section may be optioned.

— A one-half mile wide "Green Belt" borders on the Park.

Development Controls — Light production and prototype manufacturing relating 'to research and development science and high technology are allowed.

— The major physical planning theme is a place to think.

— Common graphics on park signs will add a uniform and attractive touch to the park.

— The buildings should not cover more than 20% of the gross land area.

— Company headquarters and international marketing activity is allowed as long as research and development activity is located at the Park.

— Core facilities would include computer time, glass blowing, instrumentation, machine shop, library, etc.

— Convenience services would include restaurants, security, conference rooms, reception, etc.

Financing — Provincial funding is first priority for land service financing.

— A private developer should be offered an incentive to develop speculative inventory space in the park.

Venture Capital — Develop an availability of venture capital from private and public sources.

Northern Telecom seeks continued rewards from successful R&D Investments Northern Telecom Canada Limited, the largest manufacturer of telecommunications equipment in Canada, is a subsidiary of Northern Telecom Limited, the second largest in North America. Northern Telecom Limited, with 1978 sales of $1.5 billion, employs more than 34,000 throughout the world and has 56 manufacturing plants in Canada, the U.S., England, Republic of Ireland, Turkey, Malaysia and Brazil.

"Canada is on the verge of becoming a third-class "havenot" nation, because it has not recognized the necessity for technological development. We are sleep-walking towards technological mediocrity. We are in danger of losing control over our social and economic development in the decades, maybe centuries, to come" said Basil A. Beneteau, president of Northern Telecom Limited, in Edmonton recently.

"Wealth in the years ahead will depend not on resources, but on technology, and on what nations do with their resources."

He also revealed that: "Those nations that emerge as leaders in the twenty-first century will be those that have seen the future, and acted to choose the right road. Canada is not at a fork in the road. One road leads to a position of leadership, the other to insignificance. We appear to be shuffling aimlesly towards the latter."

"Canada appears to be alone among the developed nations in having failed to recognize the single most important current trend — towards the electronic age, or the "information society".

"The combination of two major technologies, software and micro-electronics, would revolutionize our world as greatly as the harnessing of steam did a centry and a half ago. The frightening thing is that we appear not to have recognized with sufficient urgency the significance of this electronics revolution. We have not recognized the need to assert control over this vital new technology, to put it to work for Canada's development, under Canada's control. Canadian technology has some bright spots, including telecommunications, some areas of aerospace, and power generation. Northern Telecom's expansion into a multi-national company, and its leadership in digital technology, is an example of how a Canadian company with foresight and resources could become a world leader.

"We seek to be rewarded for successful R&D. And it's a pretty good investment. Every man-year of research at BellNorthern Research provides about 50 man-years of employment in other sectors."

"We must also stimulate our manufacturing industries, and reverse the ridiculous situation where we import more than one-third of our manufactured goods — more than any other industrialized nation."

As part of that strategy, an increase in the amount of research and development in Canada was essential, he added. He said that Canada devoted less to R&D than any other industrialized nation — about .9 percent in the United States. Mr. Beneteau said that he was encouraged by recent government statements that stimulation of R&D in Canada was a matter of priority, "but the proof of the pudding is in the eating". He suggested that a tax incentive of 25 percent would give Canadian companies sufficient incentive to build an effective program of R&D. Mr. Beneteau said that Canada can succeed, survive or succumb. "Right now, we are at a critical decision point, hovering between survival and succumbing," he stated. "But we can succeed. We must succeed. The choice is ours."

Basil A. Beneteau President Northern Telecom Canada Limited

The cairn, at the site of Edmonton's new Research Park, bears a bronze plaque, commemorating the facility to the memory of the late Dr. Frank Spra gins, a former president of Syncrude Canada Ltd.

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Benefits of Research and Development Needed by all Canadians.

Specific Criteria Demanded for Viable Research Park Projects

Edmonton Meets All SRI Recommended Success Criteria

Evidence clearly shows that a specialized environment is required to achieve the most successful or desired results in these endeavors. Research parks have been found to be the essential catalyst to creating all of the necessary elements for reaching goals and objectives set by the collective and individual needs of park and events.

Careful study, evaluation and independent opinions have played an active role for over 10 years for the City of Edmonton in co-operation with the University of Alberta. Together they have conducted an indepth study into the development of a major research park for the city.

In the past two years, these efforts have been augmented by an advisory committee of prominent private and public experts. In early 1979, Sanford Research International (SRI) of Menlo Park, California, were contracted by the City to provide expert advise for the development of the Edmonton Research Park.

The results gave an unqualified go-ahead!

Edmonton has all the requirements for result oriented research. In the opinion of SRI, the development work which has gone into the establishment of the Edmonton Research & Development Park has no equal in Canada. Edmonton at this time is in a better position to develop a major research park than any other community in western Canada.

This opinion is based on a number of critical factors which are essential for the development of a successful research park in Edmonton, Alberta. This has now been brought into fruition. It is now here, and ready to meet the demands of local, regional, national and inter-national interests now converging in the Edmonton region.

Once the critical factors for site location of a research park determined the benefits of location in the Edmonton area, efforts began on all counts to consistently align the research park according to tenant requirements. Following S.R.I. recommendations based on a survey of successful North American Research Centres, a Tenants Association and a Research Park Planning Board to manage the park will be formed. According to S.R.I., at this point in time, no other program in Canada is known which can better serve the needs of research tenants.

The Edmonton Research Park — developed according to known tenant criteria following the guidelines and recommendations of known successes — offering more for those who are pursuing the discovery and interpretation of new knowledge — is developing into the largest and best equipped research park in Canada.

The concept of a Research Park was first discussed by the City Administration and the University of Alberta in 1968 and thereafter. In June 1975, the Commission Board officially supported the principles and recommendations were subsequently approved by the Edmonton City Council on April 25, 1976.

On April 6, 1978 the city set aside a 1/4 section of land in the South Industrial Park which has now been serviced with facilities such as sewer, water, roads, etc.

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Corporate Tax Incentives Revealed by Premier Lougheed Premier Peter Lougheed, speaking at the opening banquet of the Financial Post sponsored "Innovations Conference" on October 31, 1979 spoke for nearly an hour on Alberta's plans for innovation, with several pointed thrusts at the provinces' unique opportunity in taking advantage of both renewable and non-renewable resources in concert with immediately foreseeable advances in high technology within the province.

Deploring Canada's present minor position in terms of research and development, the Premier, speaking to a large gathering of senior business executives, research and development people in industry and university environments, strongly recommended a higher level of teamwork and progress toward upgrading Alberta's primary products — especially those from agriculture and petrochemical sources.

Here are some quotations from the Premier's speech: "We have a strong primary resource position, but that involves the sale of unprocessed resources, particularly if they are of a depleting nature. So it is important for us as a nation to build upon our strengths, to upgrade our resources, to involve ourselves with jobs. I believe that research and development of a resource based economy is not the only, but certainly one of the very key important areas of potential for Canadian economic policy in the 1980's." * **

Premier Peter Lougheed of Alberta "A nucleus of high technology and highly skilled people exists in Alberta today. We have too, (which I think is essential is a private sector) an atmosphere conducive to the entrepreneurs and the inventors. That atmosphere has to be there — it has to be a part of welcoming and encouraging people to Alberta. Finally, we have I believe, stability in political terms and stability in our institutions in this province." * **

"The first area is — can't we do a great deal more — when we have such a tremendous renewable base — in terms of agriculture? Also in terms of taking those products, upgrading them and developing them so that they are not shipped out in a raw state but processed here in Canada before exportation.

Just look at the very important area of rapeseed oil for human consumption. Look at the work being done to ensure that those involved — such as the Food and Drug Administration in Washington — with that particular product, improving it for human consumption. Those are the challenges in terms of agricultural processing." * *

"A reference to a project made just recently, involving Gulf Canada, was an exciting project! How does it work out? Well the patent rights involved go through the Oil Sands Technology and Research to the Government of Alberta, but the partner — the private sector — is entitled to have the full scale opportunity for development within commercial operations of that entity. It was a very important negotiation and Ithink a very significant one in terms of research and development." * **

"Growing as well — if you look at our Consumer Price Index — are the high costs that flow from imported fruits and vegetables. Are there not ways in which we could be challenged to develop more within Canada — throughout the various seasons — fruits and vegetables that could be grown here? What a challenge for our area particularly — one that might have a strong position relative to natural gas in terms of energy — in terms of heat. Those are some of the challenges in terms of processing new agricultural products."

"I am not of the view that we can be a trading nation and yet set up barriers towards people who want to come here with their risk dollars and invest from other countries. I think we gain and benefit by that. I think we want to encourage our local people but we also want to recognize that we are at a stage of development where we can work in joint venture and welcome people from other countries to bring technology and risk money — to be a part of what is happening here — but in partnership with the private sector. I sense and I have been told how a great deal of this is already occurring. * **

"The second area for us to look at is the processing of our fossil fuels. That obviously would bring to your mind the whole question of petrochemicals. I heard a story today about the costs involved in shipping products to certain parts of the country for production of other products, then buying those products and having them shipped all the way back. That is the process for a number of products from petrochemicals. Reduce that unnecessary transportation component! So what can we do with the whole exciting area of petrochemicals?"

• * *

"I am proposing tax incentives. I think more and more we have to recognize the high risk elements. The losses should flow back not just through to the corporations but right to the deductibility on the personal tax side. We are going to be moving with an Alberta Corporate Tax System. For the Albertans in the room who are the representatives of organizations who are active in the province — we welcome your thoughts as to how an Alberta Corporate Tax System can play a role in innovation in terms of research and development on a resource based economy." * **

"I make no apologies for a direct appeal to you — to assess your planning and your future approach to activities — to recognize that it would be a desirable part of your organization's longer term planning to deal with diversification that would involve more activity in this part of Canada."

"What is needed is one meshing together of those people who have the skills and venture capital with the funding we can (Continued on page 12) 9

Strong Ties Possible Between trend towards more government, more regulation, more interference with private initiative, more dictation through taxation of how people may spend their money. She is determined to turn aside from what Professor Hayer called the road to serfdom.

This is an exciting development and it creates the opening for a new and e.xciting partnership between Britain and Alberta.

And this occasion today is also an exciting and significant development. The people who made it possible are typical of those on whose hard work Alberta's greatness will be founded.

Dr. Gunning, Mayor Purves, Al Bleilten and their staffs have here been building for the future.

I am delighted to be here today because believe that Britain too can help you build. You have the human drive, you have the motivation, you have the money; but you will not succeed just on your own.

Nor will you be wise to go into a limited partnership with just your neighbours to the East and West and South.

Modern technology is a global business; and modern industry must operate upon a global stage.

And that is where Britain can help Alberta. For over 100 years British industry and technology have operated on that global stage. Though Britain's record recently in productivity has been bad, its record in innovation has been remarkable.

Britain is still in the van in many sectors of technology and British businessmen and administrators still have vast experience in dealing with foreign governments and peoples.

Alberta can buy that experience and can attract it here in the form of joint-venture operations.

His Excellency Sir John A Ford, KCMG MC

A distinguished soldier and diplomat, Sir John Ford, British High Commissioner to Canada, has previously held senior diplomatic posts in Asia, the Middle East, Europe and the USA. His visit to Edmonton as a key speaker during the official opening of the city's new Industrial Research Park gave him an opportunity to extend an official tie between the interests of Alberta and Britain in respect to the sharing of research park benefits.

Here is the complete text of this speech to over 100 officials and invited guests during the opening ceremonies:

in July al last year first called on your Premier. He told me of his vision of the future for Alberta. He described how he hoped that your new wealth could be used to create new industries to put Alberta in the van in the technological revolution of the 21st century.

Later, called on some of your leeding businessmen and found them likewise inspired. returned to Ottawa enthused and did my best to pass on my enthusiasm to the British Government and businesses.

To my mind, the qualities of the Alberta Government and people of today are those very qualities which fuelled Britain with her vitality and greatness in the 19th Century.

That was a century in which circumstances combined to spur private enterprise and the initiative of the individual to highest endeavour. Now circumstances are changing again in Britain. By the end of next year Britain will be the only advanced industrial country in the world with self-sufficiency in energy; and now, like you, we have a Conservative Government which is conducting a revolutionary policy.

Yes. I think I see some eyebrows raised. But Mrs. Thatcher is a revolutionary. She is determined to break away from the

Main gate at Trinity College, Cambridge

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Cambridge and Edmonton Research

This small portion of the University of Alberta, Canada's third largest campus, houses the Department of Chemistry. Construction activity at the campus this year is reaching peak levels — especially in the area of medical research.

Britain wants to sell. At the end of June a City of London Mission came out to show you that she does. And next month our Minister of Trade is coming out to prove the point.

And that is where the Edmonton Research Park could play a most constructive robe.

Let me show you how.

In 1973 Trinity College, Prince Charles' college in Cambridge, set up its own Science Park on lines similar to your Research Park. This Park is building on Trinity College's unique tradition of research from Isaac Newton to this day. It has already proved a great success. It is showing how invention can be translated into profitable business; and one half of its product is exported outside Britain — lasers, electron optic systems, veterinary vaccines, research metals, life sciences instrumentation and many other products of modern technology. Just the products Premier Lougheed seemed to have in mind for Alberta!

Already my Consul-General, Stephen Day, has been to Cambridge to discuss collaboration between the two parks and

the management at Cambridge have asked me to pass this message to you.

PLEASE CONVEY WARMEST CONGRATULATIONS OF THE MASTER AND FELLOWS OF TRINITY COLLEGE, CAMBRIDGE, ENGLAND, TO ALL CONCERNED WITH THE ESTABLISHMENT OF THE EDMONTON RESEARCH AND DEVELOPMENT PARK. THE MASTER OF TRINITY, SIR ALAN HODGKIN, RECALLS WITH GREAT PLEASURE THE ANNUAL MEETING OF THE ROYAL SOCIETY OF CANADA HELD IN EDMONTON IN 1975, WHICH HE ATTENDED IN HIS CAPACITY AS PRESIDENT OF THE ROYAL SOCIETY (IN LONDON) AT THAT TIME. AS CREATORS OF THE CAMBRIDGE SCIENCE PARK, THE FIRST OF ITS KIND IN ENGLAND, WE LOOK FORWARD TO CONTINUING PAST CONTACTS WITH ALBERTA BY CO-

OPERATING OVER THE LONG-TERM IN THE DEVELOPMENT OF OUR RESPECTIVE PARKS, AND BY EXCHANGING VIEWS ON HOW THEY CAN BEST CONTRIBUTE TO THE VITAL AIM OF KEEPING OUR RESPECTIVE COUNTRIES IN THE FOREFRONT OF HIGH TECHNOLOGY. WE BELIEVE THAT IN THESE WAYS WE SHALL GIVE NEW MEANING TO THE LONG AND CLOSE TIES OF FAMILY AND HISTORY AND LANGUAGE WHICH EXIST BETWEEN BRITAIN AND ALBERTA. I hope that in the course of time, the two parks will be able to work together. I hope that British companies will soon start coming here. I hope that Albertan companies will come to Cambridge. I and my staff will certainly do our best to speed the traffic in both decisions."

Skilled, Stable Technicians Needed.

MA !,s Training Ground In addition to the invaluable contributions of the University of Alberta, research industries frequently have a heavy de-

mand for highly skilled workers, in addition to professional personnel.

The Northern Alberta Institute of Technology, common[v referred to as NAIT, is the largest polytechnical institute in Canada, and is located near Edmonton's downtown area. instructors serve the student-body on a 1:11 ratio resulting in what has been described as the "Best Technical Training in Canada." NAIT provides an important supply of technicians and craftsmen for technical operations. Increasing demands upon NAIT have led to the major expansion now in progress.

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Edmonton — Western Canada's Newest High Technology Research and Development Centre

Essential Component Ready To Join City's Complex Infrastructure Tax Incentives Revealed

New Research Park Years in Planning

(Continued from page 9) provide through our Alberta Heritage Savings Trust Fund, tied to the tax system that I mentioned earlier. There clearly has to be an improvement for the entrepreneur and the inventor in terms of accessibility to venture capital. There is an absolute limitation of the degree in which a new enterprise can be

It has become evident that Canada is now seriously challenged in the fields of energy development and international trade. While no one factor will resolve these problems, it is generally recognized that research and development is an essential component in a sound and balanced economy.

Over the past ten years, senior officials of the City of Edmonton and the University of Alberta have carried out a major study into the feasibility of developing a major industrial research park in Edmonton. This study was culminated in late 1975, and in April of 1976 with its development. It is now known as the Edmonton Research & Development Park.

The need for research cannot be denied. Research in energy development and industry is an important means with which Canada will be able to compete within world markets and maintain a reasonable balance of payments. Canada's trade deficit is currently in the $5 billion range with conventional energy reserves in sight of being depleted.

Edmonton possesses the ingredients for a successful major research facility. Edmonton has the resources, Edmonton has the petrochemical industry, Edmonton has the manufacturing base, Edmonton has the foresight, Edmonton has the land and Edmonton has the jump with the Edmonton Research & Development Park.

overburdened with a debt situation."

QUESTION "What is the Premier's position regarding the provincial

support of research parks in Alberta or more particularly Edmonton? Would support entail equity? Another question — does the Alberta Government support development of research parks associated with the two major universities in this province?"

ANSWER "I think I can say yes to that but you could perhaps answer

this question . .."

DR. GUNNING — "I hope very strongly that the Provincial Government will provide these nuclei of innovation which we

associate with industrial research parks in Edmonton and Calgary." (Edmonton's Research and Development park was officially opened just prior to the Financial Pest Conference.)

QUESTION "Will Alberta implement provincial income tax regulations to make it advantageous for individuals to invest in high technology enterprises perhaps similar to federal regulations pertaining to the film industry?"

Edmonton Has No Equal — SRI A Research Park Committee was formed to develop methods of management, land pricing policy, marketing, development controls, physical planning guidelines, method of financing, and size. Stanford Research Institute International (SRI) of Menlo Park, California, was selected to conduct this research. The first industrial park was established by Stanford University in 1951.

This indepth analysis provided an identification of the critical elements supportive of research activities and Edmonton's resources to support these elements. In the opinion of SRI, the development work which has gone into the establishment of the Edmonton Research & Development Park has no equal in Canada. Edmonton at this time is in a better position to

ANSWER "We will be setting up a Corporate Tax System which is

designed to develop and improve upon the diversification thrusts of the economy of Alberta in a specific way rather than being tied to a national tax system that has different objectives not necessarily in co-ordination with what we face in Alberta.'

Park Inquiries Welcome For more information on how your company may benefit from the vast storehouse of knowledge which will be available through this facility, please contact Mr. Gordon Haig, Director of Development, Edmonton Research & Development Park, 14320 - 63 Avenue, Edmonton, Alberta T6H 1S4 or telephone (403) 4352042.

develop a major research park than any other community in Western Canada. Alberta's capital is the most viable and desirable location for such a facility.

NEED MORE FACTS AND WESTERN CANADA TREND DATA? For Action, write or call:

THE CITY OF EDMONTON BUSINESS DEVELOPMENT DEPARTMENT (403) 428.5464 • RM. 1328, 10025 JASPER AVENUE, EDMONTON, ALBERTA, CANADA, T5J 156 ALLAN BLEIKEN, General Manager DON MacLEOD, Director, Business Development JOHN LEARNEY, Director, Travel Development

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eillionton