Comparing Kitchener-Waterloo to its peers

Thank you for the presentation and data. Several of us asked quite a few questions of the presenters and Dr. Stolarick. For myself, my reaction started going a little negative because the comparison is mistitled (see below). In retrospect I'm asking a few other bigger questions. In particular, what conclusions, if any, are being drawn from this data? What is the real value of this analysis and the ones of Windsor, Sault Ste. Marie, Kingston and Thunder Bay? My current inclination is to simply say, oh, more numbers, that's nice. Do the numbers tell a story? If I run into one of UW Economics' most interesting professors, Dr. Larry Smith - economics.uwaterloo.ca/fac-Smith.html I'll see if he has an opinion.

Here are a few more specific concerns:

1. The slides say "Kitchener, ON" repeatedly, although the session was called "Comparing Kitchener-Waterloo to its Peers." To get a population of 450,000, especially in 2006 for which these numbers apply, the geographic entity must be the entire "Regional Municipality of Waterloo." That's comprised of the cities of Cambridge, Kitchener and Waterloo and the townships of North Dumfries, Wellesley, Wilmot and Woolwich (including several unique smaller communities like Elmira, St. Jacobs, Wellesley, etc.). This area is often shortened to just "Waterloo Region" but would never be called "Kitchener-Waterloo." The region is not homogenous - there is a significant diversity amongst the cities and between urban and rural areas. At least, one needs to know what sort of area is being referred to here. For comparison purposes, you have to ask what the other "peer" areas look like as well. In the case of Victoria, the population of the City of Victoria was about 74,000 in 2001 (ref. www.victoria.ca/common/pdfs/profiles_city_ppltn.pdf - March/09) while the population of the "Capital Regional District" was about 326,000 in 2001 (ibid). So then the question is a bit clearer - does it make sense to compare Waterloo Region with the BC CRD? It's a bit of a stretch to me - they are clearly very different communities. I didn't persue this to the other "peer" communities, but I am kind of wondering.

2. The data was based on 2006 census data. Things have changed quite a bit in the last six months. I wonder how many trends from 2001 to 2006 and on through July/2008 have continued since the market high. I know of at least one U.S. city that went from being an important high tech player to "foreclosure capital."

3. I don't believe that the "Tech Pole" index accounts for non-local spin-off organizations. A very important factor in considering the true value of the University of Waterloo is the economic benefits that accrue to communities across Canada and around the world. Many UW graduates have started businesses in the far east and in numerous other cities besides Waterloo Region. Is this something that can just be overlooked with the argument that all schools do it equally? Seems like a pretty big assumption to me, given the world-wide scope and scale of UW's co-operative education program.

4. As I understand it, patents have value in machinery and industrial applications. They come into play in the fast-paced world of software much more rarely. The much publicized RIM patent case can be argued forever and it did send shivers through the software industry, but the practicality of software and the patent disclosure process is that patents are not a great indicator of innovation in the sector. They are completely irrelevant to theoretical physics and governance innovation.

5. One slide appears to suggest that farming and agriculture is distinct from the "Creative Class." I suspect that most farmers would beg to differ, as modern farming absolutely requires a great deal of creative thinking, and often advanced marketing and planning skills. If you talk about some elements of the food industry - a major employer in the region - the distinction may make more sense, but I think the clarification matters. edited 17:59, 30 Mar 2009

Doug,

We at the Martin Prosperity Institute appreciate your interest.

Quick Response.

1) This Waterloo-Kitchener divide is a really a false dichotomy. Call the region whatever you will but it has to work together. The comparisons being made are region to region and not region to municipality.

2) Last Canadian census was 2006 and this is the major source of data in Canada and for regional analysis. You can check our population numbers for the CMAs on the Statistics Canada website.

3)The Tech-Pole Index is not a perfect measure and you are right that it does not capture spillover effects. It measures the size of the cluster of Technology workers in a group of specific Tech Industries.

4) Patent once again not a perfect measure of innovation but help provide a picture of a regions activities. They do indicate commercialization and the development of new products, but you correct do neglect certain types of IP.

5) I would direct you to our website to look at the working paper by Betsy Donald at Queens. She has some great insight into the innovative activities that are going on in Ontario's agricultural economy.

http://martinprosperity.org/media/pdfs/From_Kraft_to_Craft-B_Donald.pdf

Ones again, thank you for your interest.

RS

edited 13:09, 31 Mar 2009