Innovation The NWT Economy and Innovation Kevin Todd Director IEA

1. InnovationThe NWT Economy and InnovationKevin ToddDirector IEA

2. Innovation – what is it? • The creation of better or more effective products, processes, services, technologies, or ideas. • Innovation differs from invention in that innovation refers to the use of a new idea or method, whereas invention refers more directly to the creation of the idea or product.

3. Canada has a poor track record on innovation • Generous R&D incentives • High investment in advanced education • Business R&D investment has been falling since 2001

4. Innovation in the North Forced to be innovative - • Challenging operating environment • High cost • Transportation, construction and communications needs • Applying existing technology in innovative ways

5. Efficient Innovative Mines • Energy costs are the major expense for our diamond mines. • Diamond mine power plants are extraordinarily efficient. Most internal combustion engines extract 35 per cent of a fuel’s energy, their plants delivers 40 per cent as electrical energy, and another 40 per cent is extracted as heat. • As a result, the NWT has one of the lowest rates of CO2 emissions per $million in GDP in Canada – even with a cold climate. Kt. CO2 per $million GDP

6. Mining and Water All new mines have world standard water treatment. For production, their plants process as much water as large cities in southern Canada - up to 30,000 cubic metres per day – the same as the city of North Bay Ontario. Water returning river and lake systems is clean, and surpasses the drinking water quality of most Canadian cities. Sewage at Diavik is treated through a tertiary treatment plant, the first of it’s kind in the Northwest Territories. The treated effluent returning to the lake is clean, and almost meets drinking water standards.

7. Innovation in HR - Mine Training The Mine Training Society is a unique partnership of mining companies, communities, Aboriginal government and the GNWT. Placed more than 800 northerners. Has state-of-art simulators - jumbo drill, a scoop tram & roof bolter.

8. Comments from innovative NWT Companies • Never enough financing to bring a product to market • Challenge is manpower, risk and energy to get a product to market • Restricted access to funding • Existing federal programs such as Scientific Research and Experimental Development (SRED) were too complicated to apply for. • Need more direct funding programs such as Industrial Research Assistance Program (IRAP)

9. Federal Budget Changes • Shift $500 million per year from SRED ($3.6 billion budget) to IRAP • Should fund company research and incentives • More changes forthcoming?

10. ITI’s Role • Support for Entrepreneurs and Economic Development Policy (SEED) • Northwest Territories Manufactured Products Policy • Developed a series of sample profiles, around 3 innovators - Diavik Diamond mines, Energy Wall Systems and Discovery Air. • Role for Chamber in expanding the list? • Recognize and promote business innovators. • Profiles can be posted on the Chamber's website, or InvestNWT. • Annual recognition?

11. Example Innovators Discovery Air’s Work on Air Ships

12. Example Innovators Diavik’s Wind Farm

13. Example Innovators Energy Wall’s new IS3000 energy cladding wall system

14. Summary Innovative solutions in the NWT have developed largely in response to our geographic, climatic and economic challenges; ice road construction, energy wall building systems and so on. Numerous studies have noted the NWT is well positioned to contribute technological innovation related to cold weather technology, transportation, arctic construction and advances in environmental remediation. A lot of innovation in training and staff development is originating with the NWT mining industry. Work is continuing in other areas, energy testing, alternate energy, mineral processing, construction techniques, ice road construction, and so on.

15. The End