Contents | Previous | Next  Vital Economic Sectors Growth Opportunities The identification of new resources, the application of new technologies, a reassessment of our economic assets, and changes in the world economy offer exciting opportunities to Nova Scotians. Five areas in particular hold considerable potential for contributing to the economy and will require special attention: the digital economy, the energy sector, advanced manufacturing, the learning industry, and the life sciences sector. The digital economy. The fast-growing and important information and communications technology sector is often loosely referred to as the digital economy. It can be defined as consisting of business activities that involve both the creation and adoption of digital technologies. This includes digital technology developers (software developers, new media, hardware manufacturers), professional business services in e-commerce, and cross-sectoral adoption of digital technologies. It also can include a range of such firms as customer-service operations and other companies important to the future of the Nova Scotia economy. This sector is vital for two reasons. First, the digital economy sector is an enabling sector for all Nova Scotian business. Our companies need to operate in a digital economy, and they need access to e-commerce and other tools to compete globally. Second, the creation of digital economy products is a high-paying, full-time, and fast-growing sector. Nova Scotia needs to develop critical mass in this sector, or it risks falling behind. Issue Actions/Next Steps Provincial strategy Develop a co-ordinated information technology strategy to clarify government’s role and to provide support to private-sector initiatives; develop an e-commerce strategy to identify government’s priorities, especially preparation of the necessary legal framework to encourage e-commerce; provide leadership and vision within government on digital economy issues Cluster development Stimulate development of an information and communications technology cluster by working with the private sector to improve the business climate, attraction of anchor companies, partnerships between businesses, universities and colleges, funding partnerships, and access to capital; support these initiatives through small and medium-sized enterprise development, labour market initiatives, and improved IT infrastructure Wider use Work with the private sector to extend broadband capability; work with small business to increase use of e-commerce techniques; examine best practices aimed at using the tax system to broaden the use of technology Model user Use the power of government as a user of technology to assist in building the industry; make Nova Scotia a leader in Industry Canada’s connectivity agenda Smart Communities Build on the success of the Western Valley in Industry Canada’s Smart Communities competition and work to expand activities into other areas Energy. The year 1999 marked the start of natural gas production from the Sable Offshore Energy Project, one of the most pivotal industrial developments in the history of the province. Already, the promise of another offshore project may bring PanCanadian’s Panuke natural gas to shore within five years, and companies are undertaking and planning considerable offshore exploration. Growth in the gas and oil sector offers significant fiscal and economic opportunity in such areas as royalties, more competitively priced fuels, feedstocks for petrochemical development, and employment in development, fabrication, operations, and supply. And similar to the digital technology sector, gas and oil is an enabling sector for business. To reap full benefits of this vast natural resource, Nova Scotia has to also take advantage of new value-added export possibilities. The Nova Scotia Petroleum Directorate and Economic Development are actively pursuing gas-related industrial opportunities and working to maximize benefits from all aspects of this industry. Issue Actions/Next Steps Overall strategy Prepare a gas and oil economic development strategy to ensure that Nova Scotia gains maximum benefits from the industry and that the growth of the industry is sensitive to other interests, especially the fishery; work toward an early resolution of the Laurentian Sub-basin boundary dispute Economic development Promote the Guysborough bypass option to attract relevant industries; work to encourage development of a petrochemical industry; work with Ottawa and Newfoundland to encourage offshore fabrication on the East Coast; identify partnership opportunities to strengthen local industry capabilities and technology transfer; support industry initiatives to maintain a competitive Canadian fiscal climate to achieve more Nova Scotia content in projects; promote offshore resource potential to encourage more exploration; protect Nova Scotia’s economic interest through active intervention in all regulatory processes Training Work with the industry and training institutions, including the Nova Scotia Community College, to create an inventory of skilled labour and identify shortages; develop new programs and expand existing ones in areas of skill shortages; support initiatives to upgrade training and certification to meet manufacturing requirements; identify R&D opportunities for support by Ottawa and the industry Advanced manufacturing. Nova Scotia’s manufacturing sector employs about 45,000 people directly. The sector accounts for most of the province’s exports, $1.7 billion in GDP, and $7.7 billion in sales. In addition, wages are high—$668 a week on average in 1999—and employment is usually full time. The sector pays about $1.6 billion in wages and salaries in the average year. It generates more spinoff employment and activity than any other sector of the economy. The sector’s high wages and significant spinoff benefits mean manufacturing investment is prized in most jurisdictions. Many areas, particularly those in the United States, use a variety of business incentives to lure new manufacturing investment. For this reason, we need to preserve and protect the manufacturing industry we now have in Nova Scotia. We also have to work with our resource industries to add value to products before they are exported and to ensure that our industries benefit from major Canadian projects and procurement. And we have to work to attract new foreign investment to Nova Scotia. Issue Actions/Next Steps New investment Use the new investment framework to actively pursue expansion of existing operations and the addition of new manufacturers whose needs fit with our strengths Value added Aggressively explore opportunities to add more value to both natural resource-based production and to goods already manufactured in Nova Scotia Industrial benefits Work with sectors to ensure a share of major projects; for example, the aerospace sector’s participation in the new Maritime Helicopter Program Environmental industries Use the lessons learned in dealing with water and solid waste issues as a springboard for the export of goods and services; use the cleanup efforts of the Sydney tar ponds and Halifax harbour to help develop expertise that can be exported Learning industry. Nova Scotia has a strong tradition of higher education, especially at the university level. In recent years, the universities have worked together to jointly export expertise and recruit international students. In addition to the universities, the Nova Scotia Community College and Collège de l’Acadie have tremendous export potential. The private sector is a major player now too. Our strong overall post-secondary education capacity is both an asset and an exportable resource. A top priority of our institutions is to prepare Nova Scotians to take their places in our own economy. As well, through the attraction of students from elsewhere and the export of expertise to other places, education and training services can be a major export industry. The provincial government must work to link companies, private trainers, universities, colleges, and schools to develop Nova Scotian education and training as an export commodity and to promote the province as a place to obtain a quality education. Issue Actions/Next Steps Co-ordination Create a learning industry consortium to advise government on expansion of the sector The digital learning economy Work with Nova Scotian suppliers to identify and secure a place in this growing sector, particularly in Internet-based education Export development Strengthen existing joint marketing efforts of Nova Scotian education and training institutions outside the province Financing Work with institutions to access funding from federal and international sources Life sciences: Globally, the life sciences market is estimated at $500 billion annually and growing at a rate of 20 per cent a year. Nova Scotia’s firms currently generate gross annual revenues of more than $50 million in pharmaceuticals, nutraceuticals, biotechnology, medical devices, food and agriculture services, and many other areas. However, few of these firms are exporters. Our university and research institutional base affords this small knowledge-based sector considerable potential for development and significant long-term benefits for the provincial economy. A solid life sciences infrastructure to assist industry development exists in the province’s 11 universities, a world-class research organization in the Bedford Institute of Oceanography, Atlantic Canada’s main tertiary care health facilities, its largest teaching hospital, and substantial health science research and teaching capability at Dalhousie University. In addition, the federal government is favourably disposed to placing the hub of a genomics centre of excellence in Nova Scotia. Issue Actions/Next Steps Seed financing Examine the feasibility of a sector-focused investment fund, recognizing the unique challenges of early-stage financing of life science companies Human resource challenges Work with the sector to attract experienced managers and trained technical personnel in specialized fields; salaries, recruitment, and retention are issues to be examined; encourage links with universities to ensure learning opportunities in the field Commercialization of research Establish a strategy to encourage business alliances with and innovation researchers and measure successes Strategic partnerships Assist in development of a “matching service” for companies to search for partners in areas critical to their growth Cluster development Work to attract anchor companies and build a cluster in this sector -- The government will work with sector leaders and data collectors to obtain a fuller picture of each sector’s current strengths. From this, it will be better equipped to chart progress and growth in the years ahead. Some work already begun can be found on the Internet at www.gov.ns.ca/ecor/strategy/ . Woven throughout the outlines presented in the Vital Economic Sectors section are issues that appear in the Strategic Directions section. Ideally, the sectors and directions should be viewed as an organic whole, with each component having the potential to affect many other components of the system. Contents:   Contents Premier’s Message Minister’s Message Introduction What We Heard What We Learned Where We Want to Go How We Will Get There  Strategic Directions    - Business Climate    - Infrastructure    - Innovation    - Labour Force    - Investment    - Exports    - Regional Capacity  Vital Economic Sectors    - Foundation Industries    - Growth Opportunities Making It Happen  Nova Scotia Business Inc.  Nova Scotia Economic Development Agency Measuring Progress Home Highlights | Strategy | News Release | Background | Feedback Form  Comments to comm@gov.ns.ca | Privacy Statement Copyright © 2006, Government of Nova Scotia, All Rights Reserved.