Cap City: Land o’ Successful Geeks
Cap City: Land o’ Successful Geeks
So
check this out, while wandering through the library here at INSEAD in
Singapore I stumbled upon a book immortalizing my hometown’s success as
a technology cluster. The book is called Silicon Valley North: A High-Tech Cluster of Innovation and Entrepreneurship. It’s a series of academic essays edited by Larisa V. Shavinina, a professor at Universite de Quebec en Outaouais and Carleton.
The
book chronicles how Ottawa’s Silicon Valley North came to be and where
it might be headed. If you’re interested in a highly technical
read of the history of the region, buy the book. If you’re
interested in a short summary of where it came from, read on.
What
follows is mostly taken from an article by Jocelyn Ghent Mallet
entitled “Silicon Valley North: The Formation of the Ottawa Innovation
Cluster”. Click here to download a .PDF of the paper.
Ottawa’s
Silicon Valley North got its start from World War II luring highly
talented people to the capital to perform R&D in the war
effort. The National Research Council and the Defense Research
Board were early research pioneers and they were soon joined by the
AECL. These institutions were also able to attract a lot of
European researchers who found themselves unemployed after the end of
the war (either through the near bankruptcy of Britain or in the newly
Stalinist East).
Researchers
from these institutions were responsible for some of the early
high-tech companies in the Ottawa region, notably Leigh Instruments and
Computing Devices of Canada.
As
the decades wore on, two major events occurred. First, club fed
decided to invest its money for mainframe computing in the Ottawa area
and this encouraged companies like Digital Equipment to locate in the
area.
More
importantly though, Northern Electric (now Nortel) decided to open its
two R&D subsidiaries in the Ottawa area: BNR (Bell Northern
Research) and Microsystems International. Microsystems Int’l was
shut down in the 1970’s, but its impact lives on. Folks from
Microsystems went on to found Calian (Larry O’Brien), Mitel (Terry
Matthews and Michael Cowpland), Mosaid. Nortel would later train
the future founders of JDS. Likewise, Mitel begot Corel and
Newbridge Networks.
In
the late 1970’s there was finally some venture capital available in the
region, mainly provided by Maclaren (a subsidiary of the Montreal
family-owned Maclaren Power and Paper Company) which was later bought
by Noranda. That’s right-Noranda the mining operation that is now
part of Xstrata-was responsible for the early development of Canada’s
high tech sector. This led to the formation of Lumonics, DY 4,
Gandalf, SHL Systemhouse and Quasar (now Cognos). Incidentally,
this is one of the big differences between Silicon Valley North and
it’s Bay Area counterpart: Ottawa companies did not have early access
to venture capital.
1983
saw the founding of the Ottawa Carleton Research Institute (now the
Ottawa Centre for Research and Innovation) by Andy Haydon, then Chair
of the Regional Municipality of Ottawa-Carleton. The OCRI would
have a seminal effect in connecting and linking entrepreneurs in the
Ottawa Valley. They organized networking events like High-Tech
Breakfasts, Tech Rocks concerts and numerous outreach programs while
also developing physical R&D infrastructure like the OCRINet that
connected numerous research labs.
The
increasing sophistication of the capital’s technology market meant that
in the 1990’s Alcatel, Cadence, Cisco, Nokia and Siemens opened up
research facilities. It was during this period where the region
seemed to “explode”: high-tech employment jumped from 35K in 1995 to
75K in 2000, but the foundations had been laid well before that.
Incidentally, if you ever want to see a graphical version of this, you can buy a map created by Denzil Doyle (he who founded Digital Equipment Canada) that shows the pictorial history of Silicon Valley North.
Thursday, September 7, 2006