Mention the word “Arizona” to a Canadian and it’s only natural that notions of the Grand Canyon, luxury resorts and some of America’s best golf courses spring to mind. Last year, Canadians made over 400,000 visits to Arizona, most of them for holiday travel. For many other Canadians, however, Arizona means all that and much more – a hotbed of economic opportunity and high-tech innovation.
CANADA-ARIZONA TRADE
When you think of Arizona, do you think of bioscience, advanced communications, aerospace and defence, environmental and information technologies, and advanced manufacturing? You should.
More than 100 Canadian companies, including Bombardier, MDS International and Comtek Communications Inc., and a host of Arizona-based firms such as General Dynamics C4 Systems,
Avnet and JD Systems, have operations in both countries. The Arizona Department of Commerce, the Canadian government and other trade and investment proponents on both sides of the border would like to see more of it.
In recent years, Canada has opened dedicated consular offices in both Phoenix and Tucson to promote cross-border trade and investment. And in early 2006, Dr. Arthur Carty, Canada’s national science advisor, visited the state to explore ways to deepen Canada-Arizona research linkages.
In his presentation to his American counterparts, Dr. Carty noted, “Science is changing through globalization, the open access movement, the development of ITC tools such as high-performance computing, and the rise of complex, integrated major science initiatives across many scientific disciplines. Canada needs to embrace stronger international collaboration and integration in S&T to meet national and global challenges.”
Like other proponents, Dr. Carty would ultimately like to see cross-border partnerships result in social and economic benefits to both Arizona and Canada.
For example, a partnership focused on optics and photonics R&D involving the National Research Council Canada and Carleton University in Ottawa with the University of Arizona in Tucson, an institution widely recognized among the world’s best for optic technologies, has generated five years of mutual, technology-based economic development.
Arizona Department of Commerce director Gilbert Jimenez says, “In today’s economy, competition between nations is less relevant than competition between regions of innovation — groups of high-wage, rapidly growing businesses that are closely linked through collaboration, research efforts, customers, products and services.”
Therese Thill, vice president, International Economic Development for the Greater Phoenix Economic Council, says Canada has consistently ranked among Phoenix’s top five sources of foreign direct investment for the last 10 years. “Canada and Arizona share core strengths in the aerospace, microelectronic and biotech industries. We welcome the opportunity for R&D exchanges in these industries.”
Arizona has much to offer Canadian high-tech firms notes Mr. Jimenez. For example, a recently introduced Angel Investment Tax Credit made $20 million available in tax credits through June 30, 2011. “This program aims to increase funding benefiting Arizona’s emerging companies. It provides $20 million in income tax credits to investors, which translates to nearly $70 million in investments in Arizona’s early stage companies,” says Mr. Jimenez.
He also notes the State of Arizona’s 2007 budget includes $35 million to attract world-class researchers, accelerate the technology market and bring innovative products to market.
Similarly, the state’s Global Advantage program supports international academic linkages such as the Carleton-University of Arizona partnership.
Other state initiatives include the Governor’s Council on Innovation and Technology (GCIT), a group of industry leaders who assist government in its development of strategies designed to propel Arizona competitiveness. “Arizona’s business community is engaged and, together with government, is transforming Arizona’s economy to advance Arizonans intellectually and economically,” says Mr. Jimenez.
Such policies and initiatives are helping Arizona attract a growing number of world-class, high-tech enterprises from Canada and other jurisdictions. Among them is aerospace giant Embraer, which established operations in Mesa; Google, eBay/PayPal and Monster have located in Tempe, and semiconductor maker Intel recently announced a $3-billion expansion of its manufacturing facility in Chandler.
On a smaller, but nonetheless impressive scale, Canadian enterprises including InNexus Biotechnology have recently set up shop in Arizona. InNexus now occupies 17,000 square feet in Mayo Clinic’s Collaborative Research Building in Scottsdale.
Western Wind Energy of British Columbia is building a 15-megawatt wind farm near Flagstaff. The Steel Park Wind Project is a $20-million capital investment. The company is also working with a major Arizona utility on its plans for a “Hydrogen Highway” on I-40 in northern Arizona.
In addition to its operations in Canada, Avnet, one of America’s largest business-to-business distributors of electronic components and systems, also has a base in Phoenix. “In Arizona, we enjoy a dynamic business climate and a rare quality of life, enabling us to attract and foster world-class talent,” said Avnet CEO Roy Vallee.
The AEA Cyberstates 2005 Report shows Arizona employs 109,400 high-tech workers with an average wage of $62,000. It ranks Arizona 4th in semiconductor manufacturing, with 24,100 workers, and 6th in high-tech exports in 2004, at $6.4 billion accounting for nearly half of all exports from the state.
“Companies ranging from Fortune 500 to start-up technology companies are drawn to Arizona because of our competitive business climate and tax structure; a skilled, knowledge-based workforce; worldclass innovation; and the fact that it’s a great place to call home,” said Mr. Jimenez.
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Associations and Partners also appearing in this report:
Sleep Country Canada of Ontario
...among them Alimentation Couche-Tard Inc., which has over 500 Circle K fuel and retail locations statewide...
Arizona-based investment banker Glenn Williamson is president and CEO of the Canada-Arizona Business Council...
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