The Canadian Incubation Industry

1
The Canadian Incubation Industry

• Marie Lussier
• Ottawa
• October 5, 2004

2
Incubation Background

• Although the first incubator in North America was
  established in 1959 our research indicates that
  the Charlottetown Industrial Mall. Established in
  1975 as a joint funding initiative of the Federal
  and Provincial Governments, is recognized as
  Canadas first Business Incubator.
• The Canadian Association of Business Incubation
  (CABI) is 13 year old born out of the National
  Business Incubation Associations (NBIA)

3
CABIs Vision/Mission

• CABIs VisionThe creation of economic growth in
  Canada by advancing Business Incubation programs
  to develop and support small and medium business
  ventures (SMEs) that successfully grow into
  entities for innovation and job creation.
• CABIs MissionCABIs mission is to provide
  information, training, networking opportunities
  and strategic alliances for its members and
  stakeholders in order to support and promote
  Business Incubation programs throughout Canada.

4
CABI Facts

• There are approximately 150 Business Incubators
  in Canada today
• Our membership and supporters are in excess of
  100 from all provinces and territories
• Canadian incubation programs surveyed (26
  incubators) were assisting more than 270 tenant
  start-up companies.
• Those tenant and virtual/affiliate companies were
  providing full-time employment for nearly 7,200
  people and generating annual revenues totaling
  more than 150,000,000.
• Company and job creation is the output!

5
Incubation Physical Structure Tax Status
16 Virtual Only
4 Not Applicable
28 - Both Bricks Mortar Virtual
52 - Bricks and Mortar Only
10 - For-Profit 90 - Not For-Profit
6
Sponsoring Entities

• 8 Academic Institutions
• 40 Government
• 28 Economic Development Organizations
• 4 For-Profit Entities (Corporations)
• 8 Hybrid
• 12 Not Applicable

7
Incubation Program Type
4 Community Revitalization
12 Other
4 Manufacturing
16 - Multi-Purpose
6 Service
64 Technology
8
Incubation Program Obstacles

• Funding
• Incubation program itself
• Incubation tenant companies
• Attracting Qualified Management
• Size of the country
• Diversity of market

9
International Award winners

• Toronto Business Development Centre 2003 NBIA
  Incubator of the Year
• Northern Alberta Business Incubator 2002 NBIA
  Incubator of the Year
• Quebec Biotechnology Innovation Centre, 2002
  Randall M. Whaley Incubator of the Year
• Garrison Guitars, 2002 Entrepreneur of the Year,

10
Incubation in Canada
www.cabi.ca