The economy of Northwestern Ontario has long been based on the extraction of natural resources. Advances in communications and the ongoing growth of a global, technologically driven economy -- coupled with long-term environmental implications and marked declines in Northwestern Ontario’s predominantly resource dependent economy -- establishes the need for restructuring and realigning of the regional economy.

Northwestern Ontario -- by virtue of both geography, human resources and technical and institutional infrastructure -- possesses vast potential for realizing positive economic opportunities through the continued development of regional economic ties with Midwest US markets. The predominant factors are as follows:

• Close geographic proximity (the NW Ontario regional center of Thunder Bay is within a half-hour drive of the US border, a three hour drive of Duluth, MN, and within a six-hour drive of the Twin Cities of Minneapolis and St. Paul – this compares with a nine hour drive to Winnipeg and an eighteen hour drive to Toronto)
  
• Strong transportation, shipping and communication networks (all markets are accessible by air, rail, water and by significantly improving telecommunication networks)
  
• The Midwestern US economy is very strong (less than 3% unemployment with strong projected growth rates over coming years) and most major Midwest industries are now beginning to look to external solutions through partnerships and investment in other communities as a means to solve a chronic labor and land shortage problem
  
• The North America Free Trade Agreement (NAFTA), has removed many barriers to the opportunity for Canadian communities to establish economic ties with US markets
  
• Favorable exchange rates provide opportunities for investment of US capital and the establishment of US-Canadian joint ventures (particularly in areas of research and development and expanding sectors such as information technologies)
  
• Northwestern Ontario possesses a highly skilled and trainable but none-the-less underemployed work force, strong educational institutions, and the flexibility to fill both niche and broad market opportunities through partnership with regional institutions, agencies and industry to develop mutually beneficial solutions to both NW Ontario and Midwestern US economic problems

The greatest opportunities are in the areas of Information Technology and Biotechnology (including Life Sciences). Each sector also has opportunities and spin-off effects within their related fields.

In the area of Information Technology, Thunder Bay and region has been successful in establishing a cluster of IT companies. Individually each company has developed excellent products and services, but lack the resources and economies of scale to fully exploit such opportunities. The outsourcing (contracting out) of IT work to local firms by U.S. based company is already proving to being a successful model for many local Information Technology firms. Attracting these jobs to our city will help to establish a critical mass of skills in this sector and further diversify our region’s economy.

In the area of Biotechnology, there are tremendous opportunities to market the world class Paleo-DNA Laboratory of Lakehead University and the excellent R&D capabilities of its Center for Analytical Services. The Paleo-DNA laboratory is one of the few operations in North America to offer mitochondrial DNA classification services for anthropological collections of old and new world populations, groups, or individuals represented by soft tissue (e.g. hair) and/or bone samples. The laboratory also does wildlife, plant and fish DNA services. Great marketing potential is the US Midwest is expected in the area of forensic DNA testing and paternity suits.

These opportunities are further enhanced with the building of a new acute care regional hospital across from the University campus, and the Northwestern Ontario Technology Center (adjacent to the University). The whole area of tele-medicine and the full integration of emerging technologies (from DNA to environmental labs) from the incubation stage to full market application can be greatly enhanced by the marketing reach of the Alliance into the US Midwest market.

This market has grown exponentially in the last ten years, to the point that the Minnesota’s life sciences industry is comprised of more than 200 companies, organizations and institutions.

Community-based organizations such as the Northwest-Midwest Alliance have already established some excellent contacts in this area, and it is well poised to help fully develop the Canadian side of this business corridor. Ontario’s excellent R&D tax subsidies, coupled with favorable currency exchange rates, will further enhance the stimulus for US-based investments in our region.

The specific opportunities identified in the Information Technology and Biotechnology sector will require a dedicated effort over and above the ongoing export development work identified by groups such as Development Thunder Bay and the Northwest-Midwest Alliance.

The time frame identified for this program is 2-5 years. The timing to fully exploit these opportunities is now. The reasons are as follows:

• The Information Technology sector is evolving very quickly and there is a need to stay current
  
• There is a close relationship or interdependency with related sectors such as biotechnology, telemedicine, etc. therefore the window of opportunity is very narrow (i.e. it will be very difficult to market our region in these sectors if we fall too far behind in these sectors)
  
• The Northwestern Ontario Technology Center is ready to help emerging technologies through its incubator program
  
• We now have a new acute care hospital and a new Medical School which can greatly enhance opportunities in research and development in the fast expanding life science and health related area. 
  
• Agreements on revenue sharing (from health related spin-off companies) between the Hospital Board and the University have been signed
  
• Lakehead University has recently received substantial funding to further enhance its R&D capabilities and it is now ready to fully market many applications such as the DNA lab and other advanced technologies into the US Midwest

This approach is intended to clearly and effectively demonstrate to pre-screened US-based companies that they can solve their shortage of critical labor skills by outsourcing areas of their non-core operations to companies in Northwestern Ontario.

Northwestern Ontario companies will have been pre-selected based on their capacity to meet the needs identified in the target market. They will also need to have the expertise required to meet the challenges of a highly competitive and aggressive US and global market. Experience to-date confirms that our region has such expertise.

This approach has already been adopted successfully with companies such as Barr Engineering, a large US-based engineering company with a strong information technology focus, which visited Thunder Bay on December 13-14 1998. This visit came as a result of the Northwest-Midwest Alliance hosting a seminar in Minneapolis on October 6, 1998 called "Doing Business with Canada, the Thunder Bay Connection". As a result of meetings with local IT and Engineering firms, Barr Engineering entered into working agreements and strategic alliances with at least 3 local companies.

The October 6, 1998 seminar was broad-based across many industry sectors and was intended to provide attendees with an overview of our region’s competitive advantage vis-a-vis the U.S.A. The Barr Engineering follow-up and subsequent success with local companies clearly demonstrates that a well targeted, sector-specific approach can greatly enhance this region's marketing efforts and help produce excellent results. Please visit the NMA web site at www.nmatrade.com for more current information.

Intended results will range from joint-ventures, strategic alliances, licensing agreements and partnerships, all to way to establishing solution centers in cooperation with local education institutions, industry and economic development agencies. The ultimate objective is to create good paying jobs in growth sectors and stop the out-migration of young, educated people from Northwestern Ontario.

While it is highly desirable to be able to establish a solution center that will employ 50-60 people, it is just as practical and desirable to help create the same number of jobs by helping 15-20 local companies grow and employ 2-3 more people each. The approach identified will work both sides of this issue to reach the desired outcome.

The critical elements of this plan are as follows:

Research: it is essential that the targeted market is fully and comprehensively understood in order to do a proper matching of companies. For example, in the information Technology sector, skills that are in demand need to be properly identified. Trends and opportunities in niche markets need to be quickly assessed. Local capacity and company profiles need to be evaluated and matched to market needs.

Cost comparison reports: analysis is required to ensure that the most current information is used. This is crucial in fast moving sectors such as Information Technology, Biotechnology and Life Science.

Supporting material and brochures: sector specific brochures need to be prepared and distributed to selected companies. Such brochures and supporting materials can also be used at seminars and trade shows in both the US and local markets to target audiences.

Internet and Web Page: web pages can be enhanced to provide information on specific opportunities in targeted sectors. Use of the Internet and Push-Technologies to reach targeted audiences will be fully utilized.

Follow-up phone calls: Even the latest technology has not been able to replace the direct one-on-one approach. While it is time consuming, it has proven very effective in the past and it will continue to be a key component of our marketing strategy.

Attend selected Trade Shows: attendance at properly selected trade shows can greatly contribute to the overall success of the program. It is during such shows that most recent trends and opportunities are highlighted and discussed by industry reps and associations. Attendance alone will not ensure success, but preparation and networking skills can help establish key contacts.

Advertise in sector specific and trade show related advertising venues. Strategically positioned advertising in conjunction with well targeted trade shows can greatly enhance the visibility and relevance of our message, especially in the larger and more competitive US Midwest market.

Seminars and Workshops: while many contacts can be established by attending trade shows, the focal point of this sector-specific marketing initiative would be to bring together a group of well selected companies and decision makers for presentations and follow-up discussions on the opportunities identified. To fully explore the market potential of the Information Technology, Biotechnology and Life Science sectors in the Minneapolis/St. Paul’s area, a minimum of four such seminars/workshops per year would be needed.

Host inward investment visits: while some contacts will choose to follow-up on their own, in some cases it may be advantageous and cost-effective to host a visit by prospective companies or key decision makers. In such cases, there would be a need to co-ordinate on-site visits and meetings with local companies (i.e. arrange meetings, drive visitors to local addresses, etc.). Cost sharing and sponsorship of such visits could be established with the local hospitality industry, real estate associations, banking and financial institutions, etc.

Public Relation: as identified elsewhere, numerous organizations have been working in this area and have been able to build a vast network of US contacts and community partnerships that have greatly leveraged resources, and in turn helped to achieve some fairly ambitious objectives. Keeping both the community at large and key partners well informed would be a crucial component of future marketing efforts. This will include preparation and distribution of press releases, newsletters and articles and participation in speaking engagements both locally (to build local support) and in the targeted sectors of the US Midwest (Minneapolis/St. Paul area).

Additional support for this marketing opportunity includes strong partnerships in the Midwest with:

The Canadian Consulate General

The University of St. Thomas

The St. Paul Port Authority

The Canada-Minnesota Business Council

The Minnesota World Trade Association

The Wisconsin Counties Association

The Minnesota High Tech Association

This US-based collaborative group would help our region promote itself, create awareness of its services, open new doors, and provide in-kind contributions for the identification and development of mutually beneficial business and trade opportunities.

The strength of the relationships established with its US partners has allowed initiatives such as the Northwest-Midwest Alliance and the Northwestern Ontario Development Network to act very quickly in achieving its objectives in the Midwest market. Of particular value is the dynamic and integrated relationship with the Canadian Consulate office which has on numerous occasions worked in partnership with these organizations to realize development opportunities.

25-40 companies directly involved with the work of the Northwest-Midwest Alliance and doing business in the U.S.

Independent business operators in Northwestern Ontario estimated at 2,000 - 3,000 companies mainly involved in light manufacturing, transportation, services and retail

15-20 area business associations and their members, representing 5,000 - 6,000 business people

10-12 Federal, Provincial and Municipal economic/business development agencies with a mandate to regenerate the local economy

20-30 community-based charitable organizations that benefit from a growing economy and increased donations

Municipalities benefit from diversification and expansion of the economic base and subsequent tax revenue streams in Northwestern Ontario

Education institutions benefit from greater local demand for programs and resources which are made possible through industry partnerships and increase in student enrollment

Women and aboriginal entrepreneurs will benefit by the inclusiveness of the program. The expertise and assistance being provided by these strategic alliances especially in the area of export development, will greatly enhance their ability to reach new markets and develop the skills necessary to compete in the new global economy

In the end, however, those who stand to benefit most are the residents of Northwestern Ontario. Recent economic trends and statistics demonstrate that this region is not benefiting from the overall economic recovery in Ontario. By creating the context for growth based on the specific target sector opportunities identified in this regional marketing opportunity, Thunder Bay and region can play a pivotal role in positioning themselves into offering a higher quality of life resulting from sustainable employment and economic opportunities which do not currently exist.