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Gagglescape tracks the flow of venture capital and angel investment in a global economy.
IMF Report On Canada’s Economy Is Out: The News Is Good
Here is the report in its entirety. Seems like the previous Liberal government did a good job of managing the country's economy . . . So much for spin.Background After surging in the first quarter of 2006, real GDP growth in Canada slowed subsequently, in part reflecting a cooling in the United States, and 2006 growth is estimated to have eased to 2¾ percent. Nonetheless, employment gains have been significant, and the unemployment rate fell to 6.1 percent, its lowest level in more than 30 years. This has partly reflected large regional disparities in economic performance, with output, wages, and prices, especially housing prices, growing much faster in the resource-rich western provinces, particularly Alberta, than in the rest of the country. Domestic demand remained the main driver of the economy, with private consumption expanding a robust 3¾ percent and business investment growing 8 percent. Residential investment, however, started declining in the second quarter, finishing the year as a whole only 2½ percent above its 2005 level. Net exports continued to be a drag on activity, reflecting the effects of past currency appreciation and a slowdown in the United States, especially on the manufacturing sector. A sharp decline in natural gas prices and a fall in real net exports combined to reduce the estimated 2006 current account surplus to 1¾ percent of GDP. In recent months, the Canadian dollar has also weakened somewhat, partly in response to the decline in world energy prices and diminished market expectations of a narrowing of the interest rate differential vis-à-vis the United States, but the currency still remains roughly 35 percent higher against its U.S. counterpart than it was in late 2002. After seven ¼ percentage-point hikes through May 2006, the Bank of Canada has since left its target rate unchanged at 4¼ percent, reflecting (...read more...)
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Posted by the editor on 02/15
Is Technology Overrated?
One of my favourite business researchers, Dean Roger Martin of the Rotman School of Business, explodes another myth in today's Globe and Mail. In a direct attack on the venerable Bill Gates, Martin says Canada doesn't need to graduate more technology students. No, what we need more of is business students.I've attended a number of presentations by Roger Martin over the past few years and one of his dominant themes is the debunking of media "superstitions" concerning the economy. The technology education myth is another one. Bill Gates propagated that myth when he argued in the Globe that the secret to American economic dominance rests in the number of technologists that country produces. Not so argues Martin. Then he gets out the stats. The financial services sector alone in the U.S. is 67% larger than the high-tech sector. Wages are 18% higher. According to Martin, Canada produces 11% more science and engineering students per capita than the United States. But we are not proportionately more competitive. Where Canada doesn't eclipse the U.S. is in the production of business students. In the U.S. a full 21% of students in universities are in business courses. Canada, on the other hand, restricts its business school enrollment. We produce just 57% per capita of the U.S. business graduates. Here is how Martin ends his story: From the narrow perspective of the software industry, Mr. Gates may see the obvious prescription for Canada. However, if we discipline ourselves to look at the facts rather than superstitions, we will head in a dramatically different direction than that advocated by the science and technology lobby's most prominent member. My experience backs Martin's position. Think about it. Canada has great researchers and engineers. We produce remarkable products that, more and more, have to go outside the country to (...read more...)
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Posted by the editor on 02/14
Keeping Canadian Cities Competitive
![]() The Conference Board of Canada made some waves in the Canadian economic policy world this week when it released its report on the global competitiveness of Canadian cities. It turns out major cities like Toronto are falling behind in their ability to compete with other major cities. "Mission Possible: Successful Canadian Cites" puts forward the case that the provincial system that equalized representation between rural and urban constituencies is failings us. The system worked 100 years ago but in today's global economy cities are playing a much greater role on the economic prosperity of their host companies. While not advocating city-states, the report concludes by saying Canada must give "major cities the power and resources they need for success." Anyone who spends time travelling the world for business or pleasure understands how international cities are pouring money into infrastructure in recognition of the growing role those places play in regional economic prosperity. Toronto has suffered -- ask the TTC -- because of our political mandarins have ignored the shift. Here are some excerpts: We are becoming less competitive. In just two years, we have slipped from 3rd to 12th place in comparative measurements of macroeconomic and microeconomic performance, according to the results of benchmarking by the Conference Board. Canada lags behind most developed economies in productivity growth. Our resource sectors require significant new strategic investment if they are to meet global competition, and our biggest cities are starved for investment in comparison with global cities elsewhere. In vital sectors of our economy, we are not keeping up with our competitors. The Conference Board makes clear in this report that strategic investment in our major cities is urgent. Nowhere is the gap between Canada as a global society and our political, fiscal and regulatory architectures more apparent than in our largest cities. (...read more...)
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Posted by the editor on 02/08
Have You Started Skyping Yet? If So, Here Are Some TIps
![]() Voip-News had a column yesterday on how to best use your personal Skype communication software. For you big Skype fans in the crowd, be prepared for a wealth of great users tips. I'm part of a Skype "swarm" with about forty or so other people. The experience is a remarkable one for a host of reasons. The experience is like working in a small office with a bunch of really smart people. Great ideas come bundled with small-talk. Here are my five favourite ways to improve the Skype experience: 1 Call Forwarding
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Posted by the editor on 02/07
The future of Magazines
[H]Consumer writes about the imminent demise of the print magazine industry. It's all about economics. The web allows publishers to delve into stories to a much greater depth than print simply because the cost to produce and distribute extra words is negligible in the online world. The same can't be said about print. Every 700 words or so in a magazine adds about one page. Guess what? it costs money to ship tons of paper around the country. So, given the right reach, online publishers can pay more for writers while spending less on print and logistics.Speed to market is another problem. In the old days it might take weeks or even months for reviews to get to the marketplace. Now, turn-around time is down to hours. Think of it this way, if you have a new tech product with a shelf life of six months or so, what channels are you going to favour with your marketing? Slow print magazines or near instantaneous websites? Here is how [H]COnsumer writer Josh Norem sums up the trend: All of this is not good news for the old guard of magazine editors, obviously, but in most cases, magazines are still superior to websites when it comes to the quality of writing, photos, and layout. There is definitely a level of pride and craftsmanship (not to mention time and money) that goes into every page of every magazine issue. But will nice photos, a good presentation, and great writing be enough to save the magazines in the long run? For the sake of my former colleagues, and friends, in the magazine business, I hope so. But a more sober assessment would be that tech magazines aren’t long for this world, and simply cannot compete with their online contemporaries.
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Posted by the editor on 02/06
Toronto Transit Camp Outwikinomics Don Tapscott
For anyone in the financial community who is interested in the potential of what Don Tapscott calls "Wikinomics," this weekend saw the Toronto technology community embrace the collaboration form to generate new ideas for the TTC's obsolete website. The one day event -- held at the popular Gladstone Hotel on Queen Street West -- brought together the TTC's top brass including Chair Adam Giambrone and Commissioner Joe Mihevic with some very smart and enthusiastic brainstorming participants. Organized by many of the people who bring the city its successful BarCamp and DemoCamp Wiki-organized gatherings (David Crow - thanks), the Toronto Transit Camp is a case study in how the "Wisdom of Crowds" phenomenon can be applied to difficult problems. In his opening remarks to camp participants Jay Goldman, of Radiant Core, said the day would provide answers to these three questions: How do we improve the dialogue between ttc and its ridership? The day's events provided answers to the first question. It seems everyone left on a high knowing that they'd contributed to improving the city and "Bettering the Better Way." Mark Kuznicki, of ReMarkk Consulting, framed the day's events as an approach or system that can be used to tackle city-related issues. Here is an excerpt from Mark's blog:
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Posted by the editor on 02/05
Thinking Of Investing In China - Think Again
![]() Venerable Canadian business magazine, Macleans, has a sobering story this week about what can happen when a starry-eyed Canadian firm thinks China is the land of golden opportunity. It turns out that Canadian firms and their investments in the booming eastern economy are -- to say the least -- tanking. Here is a must read quote from a former Canadian trade commissioner that frames the story: Canadians aren't exactly seasoned global traders to begin with, preferring to do the bulk of their business with the U.S., if they leave Canada at all. Their cautious, trusting nature is in sharp contrast to Chinese culture, where the word for honest, loashi, is a derogatory term meaning to be gullible or to follow blindly. "You're better off going to Vegas for the weekend," says Jim Sherry, a former federal trade commissioner turned consultant. "You'll lose money just as fast and have more fun."
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Posted by the editor on 02/02
Blogtv.ca: Live Video Blogging For Canadians
![]() Publicly listed Israeli company Tapuz has come to Canada to launch a new live video blogging service, http://www.blogtv.ca. The service allows Canadians access to a live, video blogging social-network that is part YouTube and part guerilla broadcasting. Developed through a JV with Alliance Atlantis and Toronto's GS New Media, blogtv.ca is available now. According to CBC.ca, "Users can list their video feed or broadcast under one of nine "channels" or categories that include music, sports, "games, sci-fi and fantasy" and even an adult content channel called After Hours." The above screen grab taken at 7:30 this morning reveals that, not surprisingly, no one was live video blogging. This is an interesting idea that torques the YouTube model but blogtv.ca really needs to emulate their larger competitor's simple user interface. Blogtv's design looks vaguely Internet one era - definitely not Web 2.0. While I wonder how much traction the fledgling company will get in the Canadian market in 2007, once mobile devices can stream video to the Net through wireless networks the long-anticipated era of grassroots, instantaneous journalism will have arrived. Who needs TV?
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Posted by the editor on 02/01
Industrial Capital Vs FInancial Capitalism
Since green and ethical investment has become a big part of the business news, I though I'd take the opportunity to look at some key drivers influencing the green economy. For those ex-economists in our audience, we offer the following discussion on economic theory. Enjoy.
A critical issue facing the environmental movement is the way Western economies structure they economic policies. The world of high-brow economic theory has waged a pitched battle for about two hundred years over the benefits of Industrial Capitalism versus Finance Capitalism. Now, if you've read Janes Jacob's "The Nature of Economies," you know that the way we structure our financial markets can have a cause and effect relationship on the environment. Some feel that when FInance Capitalism won out in the 1970s the world took a turn towards complete environmental collapse.I am not an economist and cannot claim any great insight into the clash between these systems. I have, however found a compelling essay that explains it well. Jonathan Larson is the author and this is posted on his website. (I am assuming creative commons copyright on this essay. Please go to Mr. Larson's site for more essays on his theories of "Elegant Technology ... economic prosperity through environmental renewal.") Economics: A Matter of Life or Death by Jonathan Larson (first posted at European Tribune, Jan 18, 2007) When I took economics at the University of Minnesota in the early 1970s, one of my professors was Walter Heller. Heller was President Kennedy’s Council of Economic Advisors chairman and would claim, quite seriously, that he taught Kennedy Keynesianism. In those days, the Keynesians were utterly dominant in academe and government. There were so many of them, they had subdivided into various schools. It could be argued that Heller represented the right wing of the Keynesian school. (...read more...)
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Posted by the editor on 01/31
Zone One Gives Toronto Competitive Advantage
![]() The eminent design futurist Buckminster Fuller once argued that modern buildings were so many fancy nozzles on the really important stuff of the city: the engineered services that are hidden below ground. While architects may take issue with being dismissed as mere stylists, Toronto just added another invisible technology to Fuller's modern city. Today, a city is not a world contender unless it offers a ubiquitous, high-speed Internet service. Now Toronto has one. The international press is alive this week with news about Toronto Hydro's "Zone One" service. What has caught the attention of the world's geek community? It turns out that Toronto Hydro has unleashed a world-beating wireless system that boasts the fastest speeds of any competitive cities. Wi-Fi Technology writes: Testing was conducted in mid-December by Novarum Inc., an independent consulting firm offering comprehensive broadband wireless advisory, analysis and testing services. Novarum is developing the first standardized benchmarks for overall wireless network performance. All of the North American wireless mesh networks were tested from a user perspective with industry-standard tools and methodology in Q3 and Q4 of 2006. Forget about Toronto's lack-luster promotional advertising, this is big news for the city and provides a competitive difference to businesses and cultural producers here. In the 21st Century, access to information is power. In that way Toronto Hydro's decision to give (...read more...)
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Posted by the editor on 01/29
Toby Heaps’ Davos Journal
Gagglescape's sister blog is http://www.corporateknightsforum.com. We have a series from the Davos World Economic Forum Conference that you may enjoy. By Toby Heaps: Editor of Corporate Knights magazine which publishes the annual Global 100 Most Sustainable Corporations list each year at the World Economic Forum.---------------------------- Environment themes and their relationship with the economy, particularly climate change, are hot this year in Davos. Case in point. Last night I was waiting outside the Belvedere, the main Davos Hotel where the glitterati gather at night. As I was running a little late and it was quite a long line to get inside the hotel through the security check, I wondered if anyone would notice if I budded a little. But when I noticed that the Premier of Quebec was waiting behind me in the cold line, my better instincts suggested that was not a good idea, especially in Switzerland. The Premier and I were both heading for similar events. He was off to speak on a panel with UK Conservative Leader David Cameron on climate change and energy security, and I had a dinner to co-host. I was looking forward to the dinner for two reasons: to hear what the world’s leading investment bankers had to say on taking the good fight (climate change, human rights) to the political stage, and I was curious how the red-blooded Wall Street crowd (Goldman Sachs, JP Morgan, Swiss Re) would appreciate the 100 per cent vegetarian-meal I had ordered for all of them. It turned out that the hi-carb but low-carbon veggie-lasagna was a big hit, but my dinner conversation was interrupted when a senior Canadian aluminum company executive had to go outside to answer questions from a newspaper survey on whether his company supported the Kyoto Protocol and what they were doing about it. (...read more...)
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Posted by the editor on 01/25
Global 100 Top Sustainable Companies
In case you missed yesterday's Globe and Mail, Corporate Knights' Global 100 got some good coverage. In cooperation with Innovest Strategic Value Advisors, Corporate Knights publishes a list of the world's top 100 most sustainable companies. Here is that list:The 2007 ListThe Global 100 list for 2007 (alphabetical | by country | by sector/industry)
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Posted by the editor on 01/24
Wharton MBAs Take On Silicon Valley
![]() For all you MBA grads out there who like me once dreamed of being great venture capitalists in an era where VCs are a vanishing breed, at least in Canada, then this story will give you reason to hope for the future of the industry. It turns out that the Wharton Business School has teamed up with the Utah based, student run, University Venture Fund. What is their objective? According to their press release: Founded in 2001 at the University of Utah's David Eccles School of Business, UVF is an independent, self-sustaining venture capital company committed to the entrepreneurial education of students at participating universities . . . "We're delighted that students from the Wharton School are now officially on board," said Jared Hutchings, founder and managing director of UVF. "The Wharton team of students offers exceptional expertise from previous work experiences and brings a rigorous analytical approach that reflects the strong Wharton MBA curriculum, so they will be a great asset for us. And UVF can help the Wharton students gain venture capital experience in a very hands-on way. There's no better training than investing real money in real entrepreneurs." Ah, the idea of investing real money with real entrepreneurs is something so foreign to the Toronto market that I wonder if anyone in our local investment sector remembers the risk-reward charts they once so carefully studied. Remember? In the right sector with the right team early stage risk can result in later stage rewards. Well, at least in Utah. Want o know more about the fund? Founded in 2001 at the University of Utah's David Eccles School of Business, University Venture Fund (UVF) is an independent venture capital firm committed to improving the quality of entrepreneurial education for a diverse group of students at its participating universities. The fund (...read more...)
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Posted by the editor on 01/23
Today’s Real World For Startups - Even In California
![]() Herman Miller's Aeron Chair - The former gold standard of Internet startups. Last Sunday's San Francisco Chronicle explores the world of startups and venture capital. In turns out that the new generation -- Web 2.0 -- of geek entrepreneurs are better managers of venture capital than their Internet bubble predecessors. Understandable given the conspicuous-consumption spending of the late nineties. Today's startups if they have Aeron chairs at all have either have their employees bring their own in or find them in sales: Gone are the Herman Miller Aeron desk chairs and the other technocrat excesses of the late 1990s when dot-coms burned through money and hype, throwing lavish launch parties, staffing up quickly and spending millions on Super Bowl ads.
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Posted by the editor on 01/22
Cult Of Apple Design Music Video
For Gagglescape.com readers who just can't get enough of Apple's new products, we have this fan video from New York. Apologies in advance to James Blunt fans:
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Posted by the editor on 01/22
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February 5th, MobileMonday Toronto, the mobile industry networking group, will open the floor for prospective mobile entrepreneurs to pitch their business ideas to some of Canada's leading Venture Capital companies. The focus of this session will be raising capital for mobile ventures.
Variation Biotechnologies Inc. (VBI) announces it has secured US$35.7 million in Series A financing. VBI will use the proceeds to advance the company's innovative Variosite(TM) vaccine platform into clinical development, beginning with lead vaccine candidates for influenza. H2O Innovation (2000) inc. signed two contracts for the supply of drinking water treatment plants for the cities of Palm Coast and Boynton Beach, both located in Florida. JobShark Corporation announced that it has entered into an agreement to be acquired by global leader JobServe Ltd. of the United Kingdom. No terms were disclosed. Speedware, a division of Activant Solutions Inc. announced that it has signed two new HP e3000 migration contracts worth over $7 million. The inability to attract and retain talent as well as other human resources issues continue to be the biggest threats to corporate profitability in Canada, according to results of a survey released today by Accenture. EnviroTower, announced it has secured $8.5 million in its latest round of financing to further accelerate North American market expansion of its unique, patented technology. The round was co-led by NGEN Partners of Santa Barbara, California a leading venture capital company in the U.S. Cleantech investment sector, and by initial investor, XPV Capital, one of Canada's foremost Cleantech investors. Law firms Fasken Martineau DuMoulin LLP and London, UK-based Stringer Saul LLP announced that they will merge to create the first full-service integrated Canadian-UK law firm. Little Geeks, a not-for-profit computer donation initiative, announced that it is ready to collect, refurbish and distribute used computers to underprivileged children in the Greater Toronto Area. A donation program like no other, Little Geeks allows donors (or "Donor Geeks") to directly impact their own community, by providing free computing technology and educational tools to children in their own neighborhoods. Nortel's(*) common shares, listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX"), will begin trading on a consolidated basis when the NYSE and TSX opens Friday, Dec. 1/06.
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