Calgary in the New Economy

The Economic Strategy for Calgary Table of Letter from Chairs

Contents The rapid advance of technology across all industries has enduring prosperity and establishes our ambitions caused a disruption in the global economy. This disruption in each: has created risks and opportunities for all cities, becoming the driving force for this update to the Economic Strategy • Talent: Canada’s destination for talent for Calgary. As times change this strategy evolves to • Innovation: Canada’s leading business-to-business remain relevant and to be a guide for The City of Calgary, innovation community Calgary Economic Development and the numerous • Place: Canada’s most livable city stakeholders who contribute to our prosperity. Letter from Chairs Strategic Talent: • Business environment: Canada’s most pg 3 Focus Areas Canada’s destination Calgary has a global reputation as an inclusive and business-friendly city pg 14 for talent entrepreneurial city that is connected through incredible pg 14 community spirit. These core values have influenced the Charting a course for a city’s economy is a challenge Introduction development of this update to the strategy, Calgary in the at any time, but in today’s fast-evolving world it was pg 5 Implementation New Economy. an immense undertaking. We greatly appreciate that and Timelines Innovation: more than 1,800 Calgarians provided perspectives for Since the initial economic strategy in 2008, Calgary has this update. The many hours, insight and direction About Calgary pg 30 Canada’s leading business- experienced booms and an historic recession. It is notable offered by the CEO Roundtable of business, community Economic to-business innovation that in each year in the decade since, The Economist and academic leaders, in particular, was tremendously Development community Intelligence Unit rated Calgary in its Top 5 most livable cities valuable. We also want to acknowledge the leadership pg 8 Industry Focus pg 18 pg 32 in the world. In 2018, we improved to fourth place globally of Mary Moran and the pro-bono support provided by and are now the most livable city in North America. The Boston Consulting Group (BCG). Their efforts have contributed to the success of this project. Strengths and Place: The updated strategy, which was unanimously Opportunities Conclusion Canada’s most approved by City Council in June 2018, supports The Strategy is intended to support economic pg 9 pg 38 livable city the enablers of economic development and the competitiveness, embrace shared prosperity and pg 22 belief that an entrepreneurial and innovative city with build a strong community. Success will be achieved through cross-sector collaboration and by engaging all Strategic Thank You to exceptional human capital will generate robust and stakeholders to achieve these ambitious, Framework Key Contributors enduring prosperity. Business environment: yet realistic, goals for Calgary. pg 12 pg 39 Canada’s most business- Like many cites, our economy is at a crossroads and friendly city must adapt. This Strategy commits us to advancing pg 26 our established sectors and embracing emerging industries. It reflects both the risks and the opportunities from the unprecedented advances in technology, impacting every aspect of the economy. Our future will largely be determined by the adoption of technology, deepening our talent pool and strengthening our innovation ecosystem. Adam Waterous Steve Allan Calgary in the New Economy envisions us as “the city of Chair Executive Chair choice in Canada for the world’s best entrepreneurs as CEO Roundtable Calgary Economic Development we embrace innovation and create solutions to meet the world’s most fundamental needs in food, health, energy and transportation.” The focus is on four key elements for

3 Calgary has experienced outstanding Introduction growth in the past two decades

Indexed Real GDP Growth (1997 = 100)3 Calgary is located along the foothills of the Rocky Mountains in Alberta at the meeting point of the Bow 220 Calgary nearly doubled and Elbow rivers. These are the traditional territories of GDP over the last 20 years; 200 outperforming both Alberta the Blackfoot and the people of the Treaty 7 region in Calgary: 197 & Canada overall Southern Alberta. It is also home to the Metis Nation 180 of Alberta, Region 3. The third largest municipality in Alberta: 170 160 Canada, with a population of 1.4 million1, Calgary is Canada: 161 surrounded by profound beauty and an unspoiled 140 natural environment. 120 Calgary was incorporated in 1894 and today it is a 100 growing, multicultural city, renowned for its “can-do” spirit, Olympic legacy and legendary hospitality. One- 0 1996 2002 2012 2018 third of our global population are visible minorities and Source: Statistics Canada (2017) speak more than 120 languages. Our lifestyle is active, our perspective is global and we value inclusivity. 2017 GDP per capita ($k)3 We enjoy the benefits of a large, sophisticated city, as well $73.4 as a relaxed and friendly lifestyle. We are rich in the arts, culture, entertainment and leisure activities. We are home to the most extensive urban pathway and bikeway system $53.1 $53.3 $50.0 in North America. $43.6

Our dynamic and innovative spirit, youthful workforce and clean and safe environment make Calgary a world- class city. We are home to diverse industries, including: agribusiness, transportation and logistics, energy, financial services, health and life sciences and creative Calgary Toronto Montreal Vancouver

industries. We are risk-takers and visionaries, a city that Source: Statistics Canada (2017) Calgary is a embraces change and change-makers. By embracing innovation and technology, and continuing Over the last two decades, Calgary has had one of the to diversify into high-growth sectors, Calgary has the ability highest rates of economic and population growth in to impact major global issues, including: hunger, health and growing and North America. Our economic output, driven primarily well-being, energy security and environmental sustainability. by a globally significant energy industry, has effectively unique city with doubled.2 Today, an unprecedented wave of automation We envision Calgary as Canada’s destination for talent, and digitization is disrupting all aspects of the economy. a leading city with an experienced business-to-business This represents our greatest opportunity to apply innovation community, as well as the country’s most a strong sense innovation to ensure we are able to compete at a global livable and most business-friendly city. Workforce issues level within our key industries. are an ongoing worldwide challenge and preparing our people with skills for the new economy is critical. It is also of community a priority to ensure that all citizens have the ability to participate in a thriving economy and enjoy the benefits values. of a prosperous city. 1 Statistics Canada (2017). 2 Since 1997 to 2017, Calgary’s real GDP has increased by 97%. Data based on Statistics Canada (2017). 4 5 Core Values We worked with our community to Guiding principles and inputs used for strategy update

The Economic Strategy for Calgary is a living document update our vision and strategy. that sets direction and establishes priorities while Research: evolving to adapt to changing times. Calgary has a well- An economic strategy is a roadmap that directs Data driven Conducted benchmark and competitiveness deserved reputation for inclusion, entrepreneurship and collaborative economic development activities and of the community and our industry sectors community spirit and those values have influenced the establishes shared priorities with, and for, development of the Strategy. community stakeholders. Formulated an updated Stakeholder engagement: Inclusive In 2008, Calgary adopted its first 10-year Economic Economic Strategy that is Stakeholder led Engaged via digital platforms, advisory • We are a safe and diverse community Strategy Think big. Act bold. Create great. It was the peak visionary, bold and targeted committees, and one to one discussions • We are a community that values your contribution of one of our longest and largest cycles of growth. The toward key initiatives Strategy acknowledged the city’s role as an economic • We have a sense of shared ownership in decision driver for Canada and set our sights on global greatness. making and implementing initiatives A 2014 update titled Building on our Energy, an Economic CEO Roundtable: Strategy for Calgary focused on three areas — purposeful Aspirational Convened a CEO Stakeholder group to guide Entrepreneurial diversification, shared prosperity and strong community. strategic direction and develop bold actions • We are risk takers • We expand and grow to diversify our economy As it was being completed, oil prices began a plunge that led to a global restructuring of the industry and the • We understand education is key to our success impact on Calgary was significant. The United States was always the biggest customer for Alberta’s oil and gas Why Now? Community Spirit exports but is now our largest competitor. Our access • We support each other to achieve our goals to global markets is restricted and attempts to expand It is accepted best practice to routinely refresh economic It also aligns with the development of a Calgary Resilience and solve problems the pipeline network are contentious. In 2015 and 2016, strategies. After almost five years, the time came to update Strategy through the 100 Resilient Cities global network • We have a volunteer mindset 40,000 jobs were lost in the energy sector in Calgary, Building on our Energy to ensure it remains relevant. Also, that Calgary joined in 2017. unemployment peaked above 10 per cent3 and more than the convergence of recent technological advances have • We are resilient and believe in coming together This update puts greater focus on the enablers of growth. 25 per cent of downtown offices were vacant.4 heightened the need to update the Strategy. as a community Of the challenges we face, the biggest risk may be the Despite the challenging economy, 88 per cent of the 32 The glossary of terms that define the digital economy — rapid advances in technology in our industrial sectors. The specific actions in the six focus areas in the 2014 Strategy Industry 4.0, blockchain, industrial Internet of things, capacity for a company, or an entire industry, to effectively were either completed or had progressed considerably. In big data, fintech, artificial intelligence, clusters — barely employ technology to be more productive will be crucial Calgary in the New Economy, there are four areas of focus existed when earlier iterations of the Strategy to success. The convergence of technologies will be equally with 13 actions and 45 tactics. were developed. disruptive to the labour force. The skilling and re-skilling of our workforce to accommodate the changing nature of the BCG and KPMG were engaged to provide research The timing also ensures there is alignment with the four- work is a major driver of this update. that included: global trends analysis, competitiveness year agenda setting process at The City of Calgary. The assessments with peer cities, and industry-cluster analysis. strategy closely aligns with Council Directives for One Community engagement was achieved with digital Calgary 2019-2022, the Municipal Development Plan, platforms, advisory committees, stakeholder roundtables, Corporate Industrial Land Strategy, imagineCALGARY, and interviews. It totaled more than 1,800 touchpoints Centre City Plan, Enough for All Poverty Reduction with community and business stakeholders. We also Strategy, Calgary Metropolitan Region Board, received insight and direction from more than two dozen Tourism Calgary’s Destination Strategy, Calgary’s Arts business, government and community leaders. Development Strategy, Cultural Plan for Calgary and Calgary’s Affordable Housing Strategy.

3 Statistics Canada (2015, 2016). 6 4 CBRE (2016). 7 Strengths and Opportunities

Calgary is building on a strong We are Canada’s energy capital. Alberta is home to an abundance of wind, solar and other renewable resources, economic foundation with as well as oil and gas. There are endless opportunities for limitless potential. breakthroughs and advances in the fast-evolving energy sector, which will likely emerge from the innovation Strengths ecosystem in downtown Calgary, where companies have competed and collaborated for decades to produce Calgary has strengths, advantages and opportunities solutions to technical challenges. that cities around the world envy. Over the last 20 years, Canada’s growth in gross domestic product (GDP) and Even after a structural recession, Calgary’s energy sector its GDP growth per capita have been the fastest growing remains the largest industry in Canada with $110 billion in among G7 countries5, and Calgary has driven much of revenues, with capital spending of $45 billion in 2017. It is About Calgary Clusters include interrelated firms and industries characterized the economic growth nationally. also the largest export sector in the country.10 by buyer-supplier relationships, as well as institutions and a Economic Development skilled workforce. Companies have an advantage when they are With a young and highly educated population, a rich Calgary has been an agribusiness and logistics hub geographically closer to resources – and each other. This sparks history of innovators and entrepreneurs, a cluster dating back to the 19th century. Also, Calgary is one of Calgary Economic Development works with business, innovation, builds knowledge creation, unlocks opportunities of corporate head offices, competitive business four global financial centres in Canada. Along with the government, and community partners to achieve for collaboration and enhances competition. environment and exceptional quality of life, Calgary’s highest concentration of head offices in Canada, Calgary sustainable economic growth, embrace shared success has been no accident. Calgary’s GDP recovered is home to the second highest concentration of small Calgary’s energy cluster includes companies of all sizes. 11 prosperity and build strong communities. Managed by an to beyond pre-recession levels, to more than $120 billion and medium-sized businesses per capita. The thriving Research and development, global traded networks, independent Board of Directors, we are a not-for-profit in 2017, and has outperformed other Canadian cities startup scene is a testament to a deeply embedded professional support services and a pipeline of talent makes corporation funded by The City of Calgary, community by roughly 20 per cent during the last 20 years.6 We entrepreneurial spirit. Calgary’s energy cluster a global leader. consistently post the highest level of economic output partners, other orders of government and the private From our low cost of doing business, exceptional per person7 in Canada (approx. $73,000 in 2017) and sector through our Action Calgary partnership. We position Through analysis of current strengths - areas with historical infrastructure and commercial fibre networks, to the highest labour participation rate.8 Calgary as the location of choice to attract business advantages, current productivity and business activity efficient road and transit systems, and a regional investment, foster trade and enhance the city’s workforce. levels – three established clusters (energy, agribusiness and An exceptional public education system feeds seven transportation network centered on a globally transportation and logistics) were identified as clusters where Our organization takes a lead role in developing the local post-secondary institutions, where 27 per cent of connected airport, we have the capacity to boost trade Calgary has a “right-to-win.” Another four emerging clusters economic strategy for Calgary. Through stewarding the degree completions are in STEM (Science, Technology, and investment and foster growth among existing or (tourism, creative industries, life sciences and financial services) implementation of the Strategy we can measure progress Engineering and Math) programs.9 emerging local companies. were identified for their strategic fit and potential to grow. toward shared goals. As Canada’s third most multicultural city, Calgary is a These clusters allow Calgary to enhance our positive attributes welcoming city with a globally connected workforce and – such as knowledge spillovers, or potential for innovation – a flourishing international community. Clusters and improve our overall economic performance.

Clusters, or ecosystems, are widely seen to foster Identifying industry clusters allows our business recruitment, productivity. Our analysis identified seven established and attraction and development efforts, to focus on companies and emerging industry clusters where Calgary has a that complement existing businesses. Calgary can build its competitive advantage. reputation through higher productivity, cost leadership,

differentiation, and specific market focus on its established and 5 Organisation for Economic Co-operation and Development (OECD) data (2017). 6 Statistics Canada (2017). emerging industry clusters. 7 Major comparable Canadian cities include: Toronto, Vancouver and Montréal. Data from Statistics Canada (2017). 8 Participation rate is defined as: % of working age population that is employed or looking for work. Data from Statistics Canada (2017). 9 Alberta Advanced Education (2016-2017). 10 Statistics Canada (July 2018). 8 11 Statistics Canada (December 2017). 9 Opportunities areas of focus are deeply inter-connected The four areas of focus in this strategy – Talent, Innovation, Alliances and partnerships with industry, government, other 4 Connection between Place and Business Environment – are deeply inter- organizations, advanced education and community are talent and place connected. As we implement this Strategy, our ability a key feature of this economic development strategy. All Calgary needs to be an to create or expand partnerships with the business leading jurisdictions create opportunities for alliances and Connection between Talent talent and innovation attractive place to live, community, governments and community partners networks to flourish. Engaged stakeholders are compulsory retain and re-skill talent. will be critical to success. to achieving any goals. Any transformative economic Top talent and continued change will require widespread engagement. growth in innovation are highly Place-building and being a dynamic, vibrant city is now an dependent on one another. integral part of all economic development. It is mutually We see technology infiltrating every sector of the economy, reinforcing for attracting and retaining key talent. The idea as opposed to being a standalone industry. With an Connection between of “investment in place” includes encouraging investment increased emphasis on innovation, it is vital we adapt talent and business environment in physical and social infrastructure to support connections to technological change across all industries in order to within the city and to the rest of the world. improve competitiveness and productivity. A critical part of Focused talent this Strategy will be a focus on the application of technology broadens business Calgary is livable and affordable, with a quality of life that capabilities. to Calgary’s dynamic industrial sectors. From the digital, can attract and retain the millennial talent imperative to physical and virtual worlds to business and industry— the city’s economic future. Adding to the vibrancy in the Innovation Place technology will permeate every facet of the economy. Connection between downtown core is important to ensuring the city is a innovation and place magnet for talent. An innovative city drives increased prosperity. A business-friendly environment – everything from tax Connection between business levels to ease of municipal permitting – has a renewed environment and place commitment from City Council. It is crucial to attracting High quality of life is critical investment, as well as retaining and encouraging and needs to be HQ-friendly. successful local companies. Connection between innovation and business environment

Better regulatory and tax practices drive innovation. Business Environment

Calgary’s growth has been largely driven Our growth in output per person lags Competitive Assessment by high population growth other major Canadian cities Calgary’s GDP growth: 20 year CAGR % (1997–2017) Growth in GDP per capita (1997–2017) In establishing a list of peer cities, BCG first considered The peer cities are Austin, Baltimore, Boston, Charlotte, 4 79 North American cities for comparison. They then Columbus, Denver, Edmonton, Houston, Indianapolis, 0.7% 3.4% 1.6% 2.8% 1.2% 1.2% 1.3 identified 40 comparable cities to Calgary’s population, Milwaukee, Minneapolis, Montreal, Nashville, New 3 geographic size and other factors. Of the 40, there Orleans, Pittsburg, Portland, Salt Lake City, San Diego, San 0.7% were 22 selected with similar or higher productivity to Francisco, Seattle, Toronto and Vancouver. 2 Calgary and comparable characteristics, such as: human 1 capital, innovation community, quality of life, business In the competitiveness assessment, Calgary ranked 10th Calgary Toronto Montreal Vancouver environment, infrastructure and connectivity. among the peer cities with our highest marks for human 0 capital and business environment. Population Growth in output Total GDP growth per capita growth

10 Source: Statistics Canada (2017) 11 Strategic Framework

Our Economic Strategy is composed The four areas of strategic focus will help us to achieve our vision for enduring prosperity and strengthen our of a unified vision, shared values, shared values. and four strategic focus areas. Calgary has a “right to win,” or a competitive advantage, within the established and emerging clusters. We are The Strategy is intended to align The City of Calgary, building on our success from a strong starting point. its civic partners, the private sector, educators, and other community stakeholders to achieve economic These strategic areas are deeply inter-connected. It is critical competitiveness while building long-term prosperity and we work to advance them in parallel. a stronger community. The Strategy embodies our values, makes our ambitions clear, and details the plans for achieving these bold goals.

Established Clusters Talent Transportation Canada’s destination & Logistics for talent Agribusiness

Energy Innovation Canada’s leading business-to-business Vision (B2B) innovation Industry Focus Values 4 ecosystem Calgary is the city of choice in Canada Focus Calgary is an inclusive and for the world’s best entrepreneurs. entrepreneurial city connected Areas Place Emerging & Canada’s most We embrace innovation and create through our community spirit. Growth Clusters livable city solutions to meet the world’s needs in food, health, energy and transportation. Tourism Creative Industries Business Environment Life Sciences / Health Canada’s most Financial Services business-friendly city 12 13 Focus Areas: Talent / Innovation / Place / Business Environment

While we have a highly educated workforce, we lack a critical It is imperative that our educational systems support people mass of in-demand skills and our pipeline for future talent lags in developing skills needed for the jobs being created - and other cities: these skills are changing rapidly. Capacity to re-skill the existing talent pool is also a priority. As industries transform, there • Calgary has the highest number of engineers per capita in will be rapid shifts in the demand for talent. With workforce Canada but the lowest software and computer engineers17 requirements shifting so fast, we need to be able to quickly • Calgary’s post secondary student-age population is adapt our talent supply by attracting top talent from across declining relative to the Canadian average and lags other Canada and the world. major cities Half of the most in-demand skills in 2017 were not on the • Calgary trails peer cities in post-secondary participation. radar in 2013.20 It is equally important that we include Participation in science, technology, engineering, arts and math underrepresented populations in our efforts. Historically, (STEAM) programs is falling behind the Canadian average18 fewer women participated in STEAM related educational Why does it matter? programs and careers. High school completion rates are lower for Indigenous Peoples. We have not been successful In a fast-changing world, talent—or human capital—is the at recognizing overseas experience or credentials and key to unlocking long-term economic growth. Being Canada’s transitioning new Canadians into jobs that make use of their leading destination for talent is critical to Calgary building a skills. Focusing on our diversity is imperative as it brings robust pipeline of talent for continued economic prosperity. Talent innovation and creativity into our business practices. With the rapid advancement of technologies and automation We have an opportunity with our motivated workforce and disrupting the nature of industries, having skilled workers to highly skilled educators to accelerate experiential learning and We aim to be Canada’s support and grow technology-oriented companies is essential better integrate our post-secondary institutions with our business in Calgary. Research by BCG indicates approximately half our destination for talent. community in order to match talent supply with demand. workforce is at risk to automation in the next 20 years.19

Recent trend towards Calgary having fewer post-secondary students could leave Calgary with a structural talent deficit in 5–10 years.

Calgary’s student population is in decline, What do we mean? Calgary is a dynamic centre for learning, offering outstanding relative to the Canadian average...... and Calgary now lags major Canadian cities educational options—from a high-quality public school Calgary population indexed to Canadian average Calgary population indexed to Canadian average When we say talent, we mean the number of educated, system to seven universities and colleges, providing world- experienced and skilled people available to work. Driven class programs, continuing education options, and training +40% +40% predominantly by the energy sector, our talent base has resources. In 2016, the University of Calgary was the top ranked expanded significantly over the last two decades. Alongside university in North America founded in the last 50 years.14 +20% +20% oil and gas, the Calgary economy has grown and diversified 2016 Calgary Canada Canada giving our highly educated labour force transferable skills. Ninety-one per cent of Calgary’s workforce has a high school 0% 0% diploma while 66.1 per cent has completed post-secondary average average We have a workforce with talent from around the globe. education.15 27 per cent of bachelor’s or higher degree Our people are highly skilled with world-class experience -20% Approximate age -20% Approximate age completions from Calgary’s post-secondary institutions of most post- of most post- in engineering, logistics and supply chain management, are from science, technology, engineering and math secondary students secondary students -40% -40% finance, information technology and numerous other 16 (STEM) programs. 15 20 25 30 15 20 25 30 professional capabilities. Calgary is one of Canada’s youngest Years Years cites with a median age of 36.812— and 73 per cent of the 2001 2006 2011 2016 Montreal Toronto Ottawa population participates in the labour force.13 Edmonton Vancouver Calgary Sources: CMA populations by age (Statistics Canada, 2016); Compiled by BCG.

12 Statistics Canada (2017). 17 Statistics Canada (2017). 13 Statistics Canada (2017). 18 ISCED classifications of instructional programs. Statistics Canada (2017). Analysis by BCG. 14 Quacquarelli Symonds Limited (QS) World University Top 50 Under 50 Rankings. 19 Oxford Economics, Automation Potential of Canadian Occupations (Brookfield Institute), 15 Statistics Canada (Census 2016). Compiled by BCG. 14 16 Alberta Advanced Education (2016-17). 20 LinkedIn (2017). 15 Focus Areas: Talent / Innovation / Place / Business Environment

How will we achieve it? Marquee initiatives To become Canada’s destination for talent, we intend to pursue four key initiatives:

Emphasize creativity Establish Calgary Address immediate and innovation Create Canada’s as a magnet for needs through from kindergarten largest Talent students attraction efforts Emphasize creativity Create Canada’s Establish Calgary Address immediate to university and innovation from accelerator largest Talent as a magnet for kindergarten to needs through accelerator students university (K-U) attraction efforts Other Actions (Time Frame: Immediate) (Time Frame: Immediate) (Time Frame: 1-5 years) (Time Frame: 1-5 years)

• Expand work-integrated • Advocate for increased • Grow work-integrated • Build and execute As companies demand specialized, non-traditional skill Key activities: learning programs capacity within our post- learning partnerships talent attraction sets from workers, the goal of becoming the largest campaigns that target • Collaborate with post- secondary institutions for STEAM careers Talent Accelerator in Canada is to provide recent and • Expand work-integrated learning programs senior technology secondary institutions • Explore co-branded • Increase capacity to leaders past graduates with the most relevant, in-demand skills. • Collaborate with post-secondary institutions and other and other providers to programs with global teach STEAM programs Talent Accelerators create a marketplace to better match • Attract companies that educators to pilot and scale nimble, short-form programs design programs aligned institutions • Enhance programs serve as a magnet for demand with supply through short-term certificate (three- to six-month certificates) that address immediate with business workforce • Promote advantages of a encouraging talent requirements globally diverse workforce underrepresented programs offered by various organizations. It helps to business needs • Enhance program access participation in STEAM re-skill our workforce to meet industry requirements, to • Continue to prepare • Ensure programs offered are accessible and to diverse communities learning become future-ready in specialized, technical areas such teachers to teach STEAM tailored to minority communities • Pilot/scale nimble short- programs • Develop after-school as software development term programs to re-skill • Secure funding for globally programs with the tech • Offer appropriate networking and recruiting workers recognized professors accelerator It also equips workers displaced by changes with the opportunities to ensure graduates obtain skills to find employment in an evolving job market. competitive jobs Through three- to six- month non-degree programs, • Explore opportunities to deliver courses downtown people receive rapid training in new skills to access new opportunities.

Calgary Municipal Land Corporation (CMLC) Many stakeholders would have roles to Planning and design play within the Talent Accelerator Facility construction How will we measure success?

To successfully implement and continuously improve this initiative, we will track key performance indicators at all Participants Post-Secondary Institutions activity levels. At the highest level, they include: Interest / demand Strong uptake Programs Instructors • Unemployment rate • Net migration of the population in Calgary, aged 18 to 30 Calgary Talent • Percentage of the labour force that is in specialized Accelerator technology (e.g. software engineering, computer sciences)

Corporations The City of Calgary

Demand forecasts Funding Integrating innovation and Hiring commitment Location technology into our economy requires the very best talent. Province of Alberta 16 Initial funding 17 Tuition subsidies Focus Areas: Talent / Innovation / Place / Business Environment

Why does it matter? • We need more and different funding sources to spur new startups For Calgary to improve its economic competitiveness, • We need more and stronger connections between we need to develop new sources of growth for enduring groups in our innovation community prosperity — and innovation is key to delivering them. In order to start and grow new companies, we need a Addressing these opportunities will allow us to sustain networked ecosystem for innovation comprised of people economic growth in a constantly changing world. We and organizations that move and connect in a culture of trust, can create a powerful innovation network that delivers Innovation leadership, mentoring, policy and resources. creative ideas and solutions to the world. Being home to Canada’s leading business-to-business innovation ecosystem Calgary already has one of the best examples of a networked is vital to managing challenges from digital disruptions to ecosystem in our oil and gas industry and its associated value global competitors. We aim to be Canada’s chain. For decades, this network of connections has generated leading business-to-business enormous wealth for Calgary, Alberta and Canada. Innovation can spur new ideas and new sources of growth. Calgary already has a dynamic community of innovators in innovation ecosystem. While we have a good foundation for innovation, we several sectors. If we can further grow and strengthen our recognize areas of opportunity: innovation community, we can accelerate ideas and become • Post-secondary institutions can benefit from more leaders in innovation. What do we mean? and stronger connections with the private sector to commercialize their ideas

What do we mean? the Opportunity Calgary Investment Fund (OCIF) in 2018 to provide $100 million for catalytic investments that will spur When we say innovation, we mean the number of growth and transform the economy. new and creative solutions being introduced to solve Calgary is growing in number of startups per capita, but the world’s problems. Our entrepreneurial spirit The innovation community includes numerous key runs deep in Calgary. We are risk-takers who are not stakeholders to support growth, such as: Calgary not receiving as much venture capital funding as its peers. afraid to create change. Pockets of innovation have Technologies Inc., Rainforest Alberta, Startup Calgary and emerged throughout the city driven by a variety of Creative Destruction Labs (Rockies). Top 10 cities for startups per 100K people (2016) Top 10 cities for VC Funding (2016) stakeholders, including: educators, enterprises, startups Calgary energy companies are leaders in advanced drilling, 13 % of GDP and public agents. They are generating new ideas and reservoir treatment, remote sensors and below-the-ground commercializing existing ideas. #10 of 23 1. San Francisco 17,457 4.3% innovations to improve productivity and environmental peer cities with 2. Boston 1,843 0.5% Since 2012, there has been a six per cent compound performance. They are now applying innovative thinking to 4 highest number of 3. San Diego 1,538 0.8% annual growth rate in the number of inventions above-the-ground technologies, such as: blockchain, artificial 3 startups per capita 4. Seattle 1,174 0.4% patented21 in Calgary—primarily in energy, but also intelligence and augmented and virtual reality. 5. Austin 899 0.7% in electronics, healthcare, information technology, 2 The creation and evolution of home-grown global success chemicals and interior design. A 2018 report said Calgary 6. Toronto 888 0.3% stories, such as: Canadian Natural Resources, WestJet Airlines, companies file more patents per capita than those of any 1 7. Denver 481 0.3% 22 ATCO and Shaw Communications are evidence of our 12.1 4.0 2.2 1.9 1.8 1.8 1.7 1.4 1.2 1.2 other Canadian city. 8. Montreal 340 0.2% entrepreneurial nature. These companies continue to innovate 0 9. Minneapolis 309 0.1% Our post-secondary institutions produce world-class and disrupt their industries. Our startup companies also play research. Since 2013, the University of Calgary has a major role in promoting innovation. Since 2013, more than 10. Houston 288 #20 of 23 0.1% 2. Austin 3. Seattle 4.Boston 23 Denver 7. published more than 21,000 scientific papers — 240 companies have established in Calgary—with a total 6. Toronto peer cities with 10. Calgary 10. 8. San Diego primarily in neuroscience, engineering and life sciences. investment of $2.4 billion.24 Vancouver 5. 20. Calgary 43 most VC Funding 0.1% 9. Salt9. Lake City 1. San Francisco1.

A new generation of startups is emerging in Calgary $0M $1,000M $18,000M

and so are funding sources (e.g. venture capital, angel Source: Crunchbase investors) to support them. Several venture capital and 21 Thomson Innovation (2017), BCG Center for Innovation Analytics (2017). private equity firms have established in Calgary to look 22 Innovate Calgary (2018). 23 Thomson Innovation (2017). 18 for investment opportunities. The City of Calgary created 24 Quid database (2017), BCG Center for Innovation Analytics (2017). 19 Focus Areas: Talent / Innovation / Place / Business Environment

Innovation Marquee initiatives

How will we achieve it? Create the Develop relationships Build funding to Accelerate growth within the innovation support generation through attraction, To become Canada’s leading B2B innovation ecosystem, we intend to pursue four key initiatives: Calgary community growth advocacy and trade Innovation Corridor Other Actions Create the Build funding to Develop relationships Accelerate growth Calgary Innovation support generation within the innovation through attraction, Many sectors are innovating in Calgary — including Corridor growth ecosystem advocacy and trade Key activities: academic institutions, large enterprise, startups, public (Time Frame: Immediate) (Time Frame: 5-plus years) (Time Frame: 5-plus years) (Time Frame: 1-5 years) agencies and others — but there is an opportunity to • Act as a central point of contact to create productive increase, streamline and strengthen the connections relationships among startups, companies scaling up, corporations, investors and customers • Create more enterprise • Pursue new funding • Curate and cultivate • Attract investment and relationships among them. The goal is to create a connections for startup and models for startups and relationships between and companies to fill network of individuals and organizations that connect • Strengthen connections between founders and funders scale-up companies scale-ups, including academia, enterprise, gaps in our innovation ideas to appropriate human and financial capital in to improve, as well as increase access to startup funds • Build on existing assets creation of Canada’s service agencies and ecosystem order to help companies start and scale up. largest community- investors • Promote startups and success stories to local, national, to connect and expand • Advocate for built fund to support innovation places and spaces • Embrace innovation in government venture and global audiences companies as they grow The Innovation Corridor will create more collaboration in the downtown core large enterprise capital investment and with corporations, investors and customers. Location • Work with private, public, and community leaders to • Educate investors in the • Find creative ways to provide • Align and expand tax credits innovation space is critical and downtown we can build on assets, such attract new participants into the Corridor access to workspaces programming of • Build the connections as: Bow Valley College, Nucleus, Edison, Platform and • Facilitate the entrance innovation accelerators and reach of Calgary’s • Research, understand and track the startup and of global capital into the the New Central Library. The Corridor can leverage the • Enhance access to mentors tech companies funding environment local market and senior advisors concentration of corporate headquarters and connect startups with larger companies. They can receive more funding, strategic mentorship and scalable revenue sources if corporations become customers. Corporations, in turn, can work with multiple startups to access innovative ideas. Partnerships also allow big corporations swiftness and cost effectiveness in Entrepreneurs/ developing creative solutions. Ideas How will we measure success?

To successfully implement and continuously improve this initiative, we will track key performance indicators at all Post-Secondary activity levels. At the highest level, they include: Government Institutions Many stakeholders would have • Number of startup companies per capita roles to play within the Calgary • Total value of deal flow for Calgary-based Innovation Corridor Calgary startup companies Innovation

Support Corridor Private Funders Organizations Innovation is creating and commercializing new products. Processes are needed to build a strong and inclusive economy. High Net Worth Corporations 20 Individuals 21 Focus Areas: Talent / Innovation / Place / Business Environment

We have the most extensive urban bike and pathway system Although we have a high quality of life, we recognize in North America and, compared with 22 peer cities, one of challenges we aim to address: the lowest levels of traffic congestion27, roughly 21 minutes • Students and young professionals (aged 20 to 40) in Calgary commuting versus an average of 27.28 are more likely to move away when compared to other Why does it matter? major cities. They may be seeking more urban lifestyles29 • Perceptions research suggest people do not see Place is an important strategic focus area because downtown as a livable, caring and thriving place30 enhancing livability can support how well we attract new talent and businesses. • Many Canadians do not believe Calgary offers arts and culture comparable to their current home city31 Existing strategies lay the foundation for building a strong sense of place for residents and visitors. Calgary’s Destination By becoming Canada’s most livable city, what we offer Place Strategy, Ultimate Hosts. Ultimate Host City. for example, people includes a better quality of life. Other cities are emphasizes the need to attract, develop and enhance events investing in infrastructure and services. In order to be We aim to be Canada’s and experiences, as well as build the necessary infrastructure competitive, and attract and retain top talent, we need to host these events. to make similar investments. most livable city. The Calgary Cultural Plan and Living a Creative Life, the Arts Calgary has the highest median income in Canada32, but it also Development Strategy for Calgary set Calgarians up with the has one the highest income gaps. Approximately one in 10 opportunity to connect artistically and culturally with our people in Calgary live in poverty. It is imperative we continue diverse community. They encourage promotion of arts and to support Enough for All, the poverty reduction strategy as culture as part of what defines our city. well as the plan to end homelessness.

What do we mean? Our downtown—while offering low levels of congestion Calgary students and young professionals are more likely to migrate — has bloomed in recent years with modern and When we say place, we mean the environment we live in, innovative architecture in office towers and residential than those in other Canadian cities. as well as our overall quality of life. buildings. The Peace Bridge, Bow Tower, TELUS Sky and the Central Library have all gained international attention. Highest migration typically seen from ages 20–40 across Canada ImagineCALGARY, the 100-year vision for Calgary speaks CMLC has achieved success with its award-winning, Likelihood to change city by age (% of total population) to the city being “A great place to make a living, a great mixed-use community projects in the East Village and on place to make a life.” There is a focus on offering a premier RiverWalk and St. Patrick’s Island. Calgary witnessing a living environment; safe communities; a global centre 6 higher migration of for business; a centre for arts, culture and recreation; Calgary ranked the fifth most livable city in the world by students and young and a city that welcomes people. A city that offers these The Economist Intelligence Unit every year from 2008 to professionals than elements will attract talent, foster innovation and lead in 2017. This year Calgary improved to fourth place overall, 4 other major cities economic growth. and most livable city in North America.26 In 2017, we were ranked the second healthiest city in Canada by The After years of robust population growth and a steady 2 Conference Board of Canada. influx of newcomers, Calgary is now Canada’s third most Students and young professionals ethnically diverse city. Alberta also ranks among the top provinces in Canada for 0 charitable contributions, volunteering and participating in Calgary hosts world-class events, like the annual Calgary 0 10 20 30 40 50 community events. Stampede, and with venues such as Calgary Zoo, Heritage Sources: 2016–17 CMA migrations by age (Statistics Canada); Compiled by BCG. Park Historical Village, Prince’s Island Park and TELUS Spark Note: Canada average includes Toronto, Montreal, Vancouver, Calgary, Edmonton, Ottawa Science Centre, the city attracts over 3 million visitors annually.25 Right in our backyard, we have unsurpassed and world-famous Banff National Park and other countless 27 Defined as the average number of extra minutes added due to traffic reasons when commuting using cars. natural wonders. 28 TomTom Traffic Index (2016). 25 Tourism Calgary (2017). 29 Migration Data—Statistics Canada (2017). Analysis by BCG. 26 Based on 30 factors spread across five main areas: stability, infrastructure, education, 30 Migration Data—Statistics Canada (2017). Analysis by BCG. health care, and environment. Global Liveability Ranking (2018). The Economist 31 Migration Data—Statistics Canada (2017). Analysis by BCG. 22 Intelligence Unit. 32 Statistics Canada (Census 2016). 23 Focus Areas: Talent / Innovation / Place / Business Environment

Place Marquee initiatives Expand and Actively support How will we achieve it? Accelerate enhance tourism, diversity and To become the most livable city in Canada, we intend to pursue three key initiatives: urbanization culture and inclusion and connectivity recreation assets in the Core Other Actions Accelerate urbanization Expand and enhance Actively support and connectivity tourism, cultural and diversity and The City of Calgary has the Centre City Plan to create a in the Core recreational assets inclusion Key activities: livable, thriving and caring core. The Calgary Municipal (Time Frame: 5-plus years) (Time Frame: 5-plus years) (Time Frame: 1-5 years) Land Corporation has a Rivers District Master Plan, a • Create and promote a unified vision for urbanization bold vision for Calgary’s cultural and entertainment and connectivity across relevant stakeholders

• Target investment to build • Attract, enhance and promote • Increase economic districts. The approved alignment for the Greenline • Unify, increase, and promote arts and culture, on existing and planned premier experiences and events participation for the will enhance connectivity in the core. However, there tourism and recreation in anchor neighborhoods, like: assets showcasing Calgary as the underrepresented and is potential to create a coordinated plan to accelerate Victoria Park, East Village, West Village, Chinatown and Ultimate Host City underemployed • Investigate funding models urbanization and connectivity in the core. It would Downtown core for catalytic investments • Pursue a transportation corridor • Promote Enough for All – expedite the creation of a downtown that supports linking YYC Calgary Airport, Calgary’s poverty reduction • Use creative partnerships to fund marquee • Create a multi-agency vibrant, mixed-use activity centres and buildings, committee to implement the Downtown Calgary and Banff strategy buildings, infrastructure projects such as roads, bike- the result being better connected transit, more vision for our downtown core • Support Cultural Plan for Calgary • Continually provide affordable sharing programs, light rail transit, and restoration in recreational options, and a magnet for students and • Enhance connectivity and Living a Creative Life housing options anchor neighborhoods between the Core, Rivers and • Continue to build on livability young professionals. Entertainment Districts and assets that reflect our diversity • Establish districts (e.g. culture/entertainment, innovation) the Beltline throughout the city Accelerating urbanization and connectivity in the core in anchor neighborhoods to promote unique traits and is beneficial for citizens, corporations, and The City of facilitate inter-connectivity Calgary. An urbanized core would support the retention of young professionals and the attraction of talent. More people living in the downtown area would also mean more arts, culture, entertainment and recreational events for all citizens. Increased tax revenues from higher occupancy rates could potentially facilitate more Innovation How will we measure success? investment in infrastructure projects and social services. To successfully implement and continuously improve this Post-Secondary initiative, we will track key performance indicators at all Government Institutions activity levels. At the highest level, they include: Many stakeholders would have roles to play within accelerating urbanization • Percentage of the population living in the city’s core area and connectivity in the core • Overall quality of life rating based on The City of Calgary’s Calgary annual Citizen Satisfaction Survey Culture / Entertainment urbanization Corporations • Global livability score in the Core

To be drivers of growth, cities need to Residents Hotels develop policies and action plans to attract and retain talent. 24 Meetings and 25 Conventions Focus Areas: Talent / Innovation / Place / Business Environment

A competitive business environment also fosters continuous • Business group at City Hall to address major issues innovation, which creates new business activities. To enhance and creation of a Customer Coordinator, Small our business-friendly environment, we will improve what Business position matters to people and companies, shifting perceptions along • Opening new city permit portal the way. A 2018 survey for Calgary Economic Development revealed nearly one-third of Canadian business leaders were • $100 million Opportunity Calgary Investment Fund Business not familiar with Calgary’s business environment or business • Downtown Enterprise Zone support programs.38 Environment Progress toward an improved business environment by We must also promote new avenues of growth, including The City of Calgary includes: forming new trading partnerships, attracting new sources of foreign investment, and diversifying our industries. Efforts We aim to be Canada’s most • Invest in focused infrastructure to enhance to be more business-friendly are ongoing and we recognize economic prosperity opportunities to improve. business-friendly city. • Implementing the Goods Movement Strategy, an Electric Vehicle Strategy and Calgary as a Living Lab Initiative • $90 million in tax relief for businesses • $500 million reduction in operating expenditures

What do we mean? the second highest small and medium-sized businesses per capita in Canada.36 When we say business environment, we mean both the Most Canadian business leaders believe it’s easy ease of conducting business and the level of business Why does it matter? to do business in Calgary, but over a third aren’t familiar activities in Calgary. Access to talent, a culture of with our permitting process and support programs. innovation and a great quality of life are important to While talent, innovation and place are important strategic being a business-friendly jurisdiction, as are initiatives focus areas, maintaining a business-friendly environment is Given everything you know about the business environment in Calgary, how would you rate Calgary on: to support business growth and maintain strong lines of just as important. As the world becomes more connected and complex, so do business activities. From startups 2% communication within the business community. Access to quality of infrastructure Don’t know to mature enterprises, major cities around the world are (e.g. transportation, communication) 4% 23% 23% 23% 10% 23% 2% Business activities are driven by a number of forces, competing to create more business-friendly environments Excellent Taxes 4% 12% 18% 27% 12% 26% including how companies perceive the business to attract companies. environment, how costly it is to operate and more. 1% Very good Compared with peer North American cities, studied by After Saskatchewan37, Alberta is the province most Ease of doing business 3% 11% 22% 25% 10% 29% Good BCG, Calgary ranks second33 in having the most business- exposed to Canada’s international trading partners. With 1% ongoing changes in international trading regulations— Availability of quality space 2% 12% 23% 23% 9% 30% friendly environment. Fair especially the North American Free Trade Agreement 1% Access to capital 2% 15% 20% 21% 11% 30% Over several decades, Calgary developed a leading — we aim to spur new business activities. Calgary has Mediocre 1% business environment supported by available commercial historically enjoyed a low effective corporate tax rate but Business support programs 4% 15% 19% 19% 9% 34% and industrial real estate34, no provincial sales tax or health it is an ever-changing environment. Poor / Very poor 35 care premiums, low corporate tax rates , accessible equity Building and development 2% 14% 19% 20% 7% 39% and debt financing for mature firms, and consistent levels permitting process of investment. As a result, our economy has historically led Canada’s overall growth. Source: Calgary Economic Development’s 2017 National Perceptions Survey

These factors make Calgary a cost-effective location for 33 Based on competitive assessment of 22 similar cities across capital flow, cost- any business from startups to multinational corporations. effectiveness and corporate influence. 34 CBRE (2017), Cushman & Wakefield (2017). With our world-class resource base, talent pool, and 35 KPMG and MMK Consulting (2016). 36 Statistics Canada (December 2017). business environment, Calgary is home to more than 100 37 Alberta exports ~$24 per capita vs. Ontario exports ~$15 per capita vs. Quebec exports ~$10 per capital. Data from province websites (2017), Statistics Canada (2017), 26 companies in the S&P/TSX Composite Index, as well as Analysis by BCG. 38 Calgary Economic Development’s 2017 National Perceptions Survey. 27 Focus Areas: Talent / Innovation / Place / Business Environment

Business Environment Marquee initiatives Key activities: • Work with The City of Calgary to launch the Open for Business campaign to share guidelines and timelines How will we achieve it? Implement Develop Calgary as for starting a new business To become Canada’s most business-friendly city, we intend to pursue two key initiatives: initiatives to a Living Lab generate business • Develop and publish a Key Performance Indicator scorecard on Calgary’s business environment development • Expand role of The City of Calgary’s Customer Other Actions Coordinator, Small Business to be a “one-stop shop” to Implement address any business-related services and questions initiatives to Develop Calgary generate business as a Living Lab Initiatives to generate business development • Ensure business continuity through disasters-relief and infrastructure projects development (Time Frame: 5-plus years) (Time Frame: Immediate) Calgary is a business-friendly place that offers multiple • Maintain a supply of industrial land to support growth financial advantages for companies to operate. When of existing businesses and attract new businesses considering growth or relocation, businesses are concerned • Launch an Open for Business campaign • License and share The City of Calgary data on a large scale with fees, permit requirements, licensing processes and • Advocate for provincial and federal governments to • Enhance communication with the business community • Open City infrastructure to create wireless (5G ready) zones approval timelines. The City of Calgary understands that a improve corporate tax rates and incentives in order to be with industrial partners • Initiate a one-window approach for business and expand competitive, business friendly environment will help small, more competitive than those in the United States the role of Customer Coordinator, Small Business • Extend dark fibre footprint of technology and innovation to provide solutions to city challenges medium and large enterprises thrive. The City of Calgary is • Ensure business continuity through disasters and the first municipality in Canada where business owners can infrastructure projects apply for and manage their required licenses, approvals, and • Maintain a supply of industrial land to meet objectives in attracting new business and supporting business growth fees entirely online. • Develop and deploy a public Key Performance Indicators A Key Performance Indicator scorecard for the public, (KPI) scorecard government and businesses creates a transparent view • Advocate for provincial and federal governments to of a business-friendly environment and will highlight areas improve tax position versus the United States for continuous improvement. The scorecard can include: commercial real estate cost, industrial real estate cost, city response time to business-related inquiries, percentage of processes with clear guidelines and timelines.

Corporations How will we measure success?

To successfully implement and continuously improve this initiative, Many stakeholders would have roles to we will track key performance indicators at all activity levels. At the play within business development highest level, they include: Small Business Post-Secondary Corridor Institutions • Increase net percentage in the number of businesses • Increase the number of industries represented by Initiatives for top companies business • Decrease average time to acquire a business permit or license development • Decrease the number of business-related, city regulations Business The City of Calgary Associations An effective business environment, including policy frameworks,

processes and clear communication Entrepreneurs/ Other orders can enhance competitiveness and Ideas of government 28 attract investment. 29 Focus area indicators Implementation

Implementation and Timelines The key performance indicators for each area of focus With four areas of focus, 13 key initiatives and 45 meet three criteria: actions, there is much to do in achieving the vision of Hierarchy of indicators the Economic Strategy within the timelines that have 1. Progress toward the goal been established. The previous Economic Strategy for Calgary reported on core indicators to answer the question: “How are Calgarians 2. Data available on an annual reporting basis better off?” In this update, they are replaced with indicators reflecting progress on each of the areas of focus. In addition, 3. Comparable data is available from other Calgary in the New Economy will be a living document. performance indicators will be developed to reflect the progress toward key initiatives. jurisdictions in Canada It will adapt and evolve over time to meet the needs of Calgary.

Key Initiatives Implementation Timeline 4 13 Immediate 1-5 Years 5+ Years Focus Areas

Create Canada’s largest Establish Calgary as a magnet Create Canada’s largest talent accelerator talent accelerator for students Establish Calgary as a magnet for students Talent Emphasize creativity and innovation Address immediate needs  Emphasize creativity and innovation from K-U from Kindergarten to University (K-U) through attraction efforts Address immediate needs through attraction efforts

Build funding to support Create the Calgary Innovation Corridor Create the Calgary Innovation Corridor generational growth Build funding to support generational growth Innovation Develop relationships within Accelerate growth through Develop relationships within the innovation ecosystem the innovation ecosystem attraction, advocacy and trade Accelerate growth through attraction, advocacy and trade

Accelerate urbanization and Expand and enhance tourism, connectivity in the core culture and recreation assets Accelerate urbanization and connectivity in the core Expand and enhance tourism, culture, and recreation assets Place Intentionally support Intentionally support diversity and inclusion diversity and inclusion

Implement initiatives to generate business Deploy initiatives to facilitate Develop Calgary as development and growth Business business development and growth a Living Lab Develop Calgary as a Living Lab Environment 30 31 Established Clusters Trends influencing the energy industry include: • Energy demand is growing globally; driven by Energy developing and non-OECD countries • As the global energy supply map changes, The energy sector’s roots in Calgary go back more Canadian oil and gas is essentially landlocked than a century and have been the driving force in the due to a lack of tidewater access for exports and city’s economy for decades. Canada is one of the top our biggest customer, the United States, is now also producers of crude oil and natural gas in the world our biggest competitor with every major energy company in the country headquartered in Calgary. There is a highly integrated • The need for greater efficiency and lower carbon ecosystem linking talent, capital and policy that make emissions globally is pushing energy companies to Calgary a global centre of excellence in all things energy. adopt new technologies that produce more with less • Economic viability of renewable energy is improving, The cluster-centred downtown includes companies and, in combination with public policy, is resulting in involved in all aspects of energy production and increased capital investment transportation, entrepreneurs, highly skilled workers, well-developed supply chains and applied research. Our expertise in this global-scale industry extends from petroleum to solar, wind and other renewables, as well as innovation in clean tech. Renewable energy

Even with challenging economic fundamentals and and clean tech are fast- Industry a historic structural recession in recent years, oil and growing elements to gas companies still make considerable investments in Canada with planned expenditures of $22.5 billion in the sector as Calgary Focus: 2018. 39 In 2016, the oil and gas sector accounted for represents nearly half approximately 46,000 jobs in Calgary.40 of Alberta’s $2.7 billion Established and Renewable energy and clean tech are fast-growing clean tech market in elements to the sector as Calgary represents nearly half energy. Emerging Industry of Alberta’s $2.7 billion clean tech market in energy.41 We are leaders in addressing environmental issues through Clusters stringent regulation and investments in advanced technologies, such as carbon capture and storage. Agribusiness Calgary companies also operate about 25 per cent of Canada’s installed renewable energy capacity.42 Agribusiness is another historic economic sector in Calgary and part of the fabric of the community, with Organizations like Canadian Oil Sands Innovation Alliance roots dating back to the 19th century. (COSIA) and Clean Resource Innovation Network (CRIN) are key elements driving change in the oil and gas Today, the industry has expanded to crop and livestock production, meat processing, food and beverage Established Clusters Emerging & Growth Clusters industry. Among the most promising opportunities for the sector to leverage is the convergence of technological manufacturing, support services and equipment advances, such as: industrial Internet of things (IIoT), manufacturing, as well as growth areas such as, precision T ransportation Tourism machine learning, big data, blockchain, robotics and agriculture and functional foods. Value-added activities & Logistics sensor fusion to reduce costs and improve performance. in the sector include sales and marketing, finance, and Creative Industries research and development. Agribusiness Life Sciences / Health 39 Alberta NAICS 211, Statistics Canada (2017). Energy 40 Statistics Canada (2016). 41 Delphi Group (2017). 32 Financial Services 42 CanWEA (2018). Calgary Economic Development Analysis. 33 Value added food processing and manufacturing Three quarters of all air cargo in Alberta moves through Emerging Clusters generates $95 billion in sales and employs approximately YYC Calgary Airport and can reach anywhere in the world 18, 600 in Alberta, 14 per cent of the manufacturing within 48 hours.46 Calgary is at the intersection of major workforce.43 Alberta has an established advantage in east-west and north-south highways, providing access Life Sciences producing plant-based protein and pulse crops. Alberta’s to 16 million consumers by road within a one-day drive. The life sciences industry is an emerging sector in top agri-food leading exports in 2017 were processed Both of Canada’s Class I railroads operate high-velocity Calgary and is focused on industries related to meats, wheat and oilseeds. The leading export market was intermodal facilities that provide 48-hour transit to West public health and well-being. The high-growth sector the United States, which at $4 billion, was greater than the Coast ports. Research and includes: biotechnology, healthcare services, clinical rest of the top five combined – China, Japan, Mexico and trials, pharmaceuticals, animal health, medical imaging development will South Korea.44 The Transportation and Logistics sector in Calgary was estimated to employ approximately 55,000 people in 2017. 47 and medical devices, nutraceuticals, genomics and remain as an integrated Calgary is a centre of agribusiness in Canada and is medical research. component of the life home to a cluster of leading firms, a multi-modal Calgary’s location in the centre of Western Canada results This sector typically has a higher degree of research transportation network, and post-secondary institutions. in lower total costs over other cities across the west. sciences industry. and development and public-sector investment than The University of Calgary, SAIT and nearby Olds College Calgary is the second busiest airport for air cargo flights. most sectors. are working with industry to drive innovation. In addition, Calgary is home to large shipment hubs for leading courier companies and trucking firms and home Calgary is also home to dozens of life science companies In 2018, the Calgary-Olds Smart Agri-Food Corridor was to distribution centres for a number of leading consumer and has strong research infrastructure at the University adaptations of technology such as blockchain to finance, established to further develop an ecosystem to support goods companies. of Calgary and Foothills Hospital with particular the sector has grown to include software companies. innovation and incubate entrepreneurial companies strengths in infectious disease, brain and mental health, with access to a world-class agriculture environment Calgary is emerging as a global hub for development of Growth in financial services has been a catalyst for animal health, clinical trials and biomedical engineering. supporting the development and scaling of new technologies for autonomous mobile systems that are emerging fintech firms, cybersecurity and other tech expected to drive future growth in the sector. A cluster of technologies throughout the production chain. Trends influencing the life sciences industry include: firms with products and services for the financial sector. Unmanned Aerial Vehicle (UAV), geospatial data and analysis, Trends influencing the agribusiness industry include: navigation and global positioning companies are located in • Technology is disrupting the delivery of health care Trends influencing the financial services industry include: Calgary and, along with local post-secondary institutions, is and pharmacy services • Increasing regulation and compliance regime globally • Global population is forecast to reach 9.8 billion by focused on improving efficiency in major industrial sectors, 45 • Research and development will remain as an 2050 and will drive agriculture demand; most growth • Increasing protection of cybersecurity and including: energy, agribusiness and construction. integrated component of the life sciences industry will come from China and India customer protection issues of identity Trends influencing the transportation and logistics • Increases in crop production will come from yield • Financial companies are focusing on digital industry include: efficiency improvements, not land usage Financial Services strategies and utilizing new technology • Conscious consumerism is driving a demand • Cross border e-commerce is increasing, resulting in Calgary is one of four largest financial centres in platforms and applications to serve and stay higher demand and requirement for distribution and for food quality, safety, transparency, and supply Canada. The cluster of financial services firms in the in touch with customers fulfillment centres chain management city are leaders in managing foreign direct investment, • Automation is improving productivity and • Multi-channel supply chain is emerging as companies investment banking, private equity management, wealth changing the nature of the workforce • Sector consolidation will see companies vertically expect reliable and faster deliveries integrate to capitalize on branding, and research management and retail and corporate banking. • Automation is giving rise to the use of Internet • Increasingly, financial services are becoming and development of Things (IoT), robotics and modularization in Most of the world’s major investment and commercial technology companies warehouse management banks have a presence in the city. Calgary firms handled Transportation and Logistics • Autonomous vehicles are approaching mainstream 9.5 per cent of energy-related finance deals across the application which will disrupt the labour force in the world from 2012 to 2016 and about 17 per cent of their Calgary has been a transportation and logistics centre transportation sector, and other sectors total value.48 since the intercontinental railroad arrived in the 1870s and today it is the leading inland port in Western Canada. The financial services sector accounted for There is a well-established ecosystem for moving cargo approximately 21.5 per cent of Calgary’s GDP and and people, warehousing and storage of goods, as well as employed approximately 30,900 people in 2016.49 support activities for modes of transportation. The sector includes retail and investment banking, accounting and insurance, but with the emergence 43 Deloitte (2017). 44 Trade Data Online (2017). of financial services technologies (fintech) and the 45 United Nations Department of Economic and Social Affairs. 46 The Calgary Airport Authority (2018). 48 The Conference Board of Canada (2017). 34 47 Statistics Canada (2017). 49 The Conference Board of Canada (2017). 35 Creative Industries Tourism

Creative Industries is based on the ability to convert ideas Tourism is a cluster that cuts across several industries, including: and knowledge into commercial products and services. It accommodation, food and beverage, retail, transportation, encompasses the firms and organizations that contribute sport and recreation, and arts and culture. This puts the tourism to Calgary’s arts and culture, including: film, television, cluster in a unique position of both contributing to quality of video and sound production, broadcasting, visual and place, as well as being an industry cluster. performing arts, advertising and marketing, publishing and printing, digital media and design services. Spending from vacationers and business travellers pulls new money into the economy. Spending by residents hosting Film and TV production are a notable strength for Calgary friends and family, as well as ‘staycations’, keeps money as our talented crews have won more Emmy, Golden circulating in local economy and generates ongoing benefits. Globe and Academy awards than any jurisdiction in Seven million visitors generated $1.6 billion in tourism Canada over the past 15 years.50 Significant assets in the spending in 2017.52 community for creative industries and culture include the Glenbow Museum and National Music Centre. The Calgary’s Destination Strategy – Ultimate Hosts. Ultimate Host Calgary Film Centre has modern sound stages and can City emphasizes the role of marketers, advocates, hosts and accommodate any size of production. activators to drive tourism growth.

In 2017, the film and television sector brought about Calgary is the gateway to Banff National Park, one hour an estimated $178 million in production.51 Calgary is west of the city. Other tourism sites and events, include: the also home to a cluster of companies in the fast growing Calgary Stampede, Spruce Meadows, Calgary Folk Festival, sectors of e-learning and digital advertising. Glenbow Museum, Calgary Zoo and Heritage Park. Calgary hosted more than seventy major events in 2017.53 These Calgary’s low operating cost and growing talent base events are an important source of visitor spending. has the city in a position to be a leader in digital media. The sector is supported by educational programming at Trends influencing the tourism industry include: the Alberta College of Art and Design, SAIT, Mount Royal • China is leading growth in outbound tourism expenditure University and the University of Calgary. accounting for 21 per cent of the global market54 Trends influencing the creative industries include: • Increasing demand for experienced-based tourism including wilderness adventures, ecotourism and • Digital subscription based platforms are assuming wellness retreats market share from cable providers and are increasing their investments in digital productions • Technology is disrupting how travel is planned and experienced, which decreases the role of intermediaries • Advertising is the fastest growing segment of digital media followed by digital education • During economic downturns, film and television digital subscriptions continue to rise • Virtual and augmented reality technology is disrupting how creative content is generated and consumed • Emerging economies share of creative industries production and consumption is increasing

50 IMDB (2017). Analysis by Calgary Economic Development. 51 Calgary Economic Development (2017). 52 Tourism Calgary (2017). 53 Tourism Calgary (2017). 36 54 Tracy Chen Bloomberg (2018). 37 While we are unable to list all the contributors, Conclusion Thank You we would like to thank: Alberta Women Entrepreneurs This is an exciting time to be to Key ATB Financial Boston Consulting Group in Calgary, and we invite you Benevity Contributors Brookfield Asset Management to be a part of the future. Brookfield Residential Calgary Academy Over the past year, we have engaged more than The Calgary Airport Authority Calgary is a city with endless potential. Our core Our business environment is exceptionally 1,800 civic partners, business leaders, educators, Calgary Arts Development values and community spirit are what drives our competitive. We will become one of the world’s industry associations, community stakeholders, Calgary Economic Development Advisory inclusive and entrepreneurial city. most business-friendly cities. and other public as well as private organizations. Committees With their deep insights, valuable input, and Calgary Technologies Inc. Our young and growing population is energetic. With our strong foundation and existing unwavering commitment to Calgary, these Calgary TELUS Convention Centre Carbon Upcycling We will attract top talent from across Canada and advantages in talent, innovation, place and stakeholders have played a key role in shaping our The City of Calgary the world. business environment, we are ready to tackle updated Economic Strategy. We greatly appreciate Creative Destruction Lab (Rockies) challenges together. their time and contributions. Our entrepreneurs and corporations are already ENMAX innovating. We will become a leading business-to- We are committed to making Calgary the city of Fiasco Gelato business innovation hub. choice in Canada for the world’s best entrepreneurs. FIELD Upgrading We are ready to embrace innovation and create Futurpreneur Our city is also growing rapidly with new events, solutions to meet the world’s needs in food, health, Husky Energy venues, residential areas and commercial energy, and transportation. KPMG buildings. We will accelerate our urbanization and Momentum connectivity efforts. Mount Royal University Parkland Fuel Corporation SAIT Tourism Calgary Trico Homes Shell Canada Startup Calgary University of Calgary Vibrant Communities Calgary Vintri Technologies West Canadian Digital Imaging What can you do to be a part of the change? WestJet Zedi In order to realize our vision, we will need support from civic Zinc Ventures partners, public agencies, businesses, educators, non-profit organizations, and above all, you. There are various ways to get involved, and we invite you to be part of the change.

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