Economic and R&D Impact Analyses

Doyletech is a recognized leader in economic impact assessment across industries and programs. Our experience ranges from the assessment of technology commercialization activities at publicly-funded labs and agencies to the economic impact of new companies and operations on a surrounding geographic area.We have developed proprietary economic impact models for specific applications. Our models for the assessment of licensing and fee-for-service activities from publicly-funded research are considered the keystone in Canada. Our community economic impact models, which assess the impact of a specific entity on the surrounding community havebeen applied across Canada. In the case of a new operation, (or a proposed operation), we have developed a comprehensive model that assesses not only the ongoing annual impact from the operation (or proposed operation) but also its one-time ‘startup’ impact. Based on our industry experience, we have developed operation-specific (and industry-specific) multiplier effects.

While we can offer a wide range of economic assessment assistance, the following outlines two of our assessment service offerings:

Doyletech’s Laboratory Impact Assessment Service – Measuring the Direct Economic Impact of Government-Funded Research

Depending on their missions, government laboratories in Canada contribute to the country’s economy in a number of ways, such as the pursuit of R&D projects that are too risky for the private sector, collaboration on industry standards, and participation in international programs such as space exploration and subatomic particle physics. They also develop technology that can be licensed to the private sector for the supply of products, services, and processes.

We can assist your laboratory in quantifying its economic contribution by:

	Identifying companies whose origins can be traced to the transfer of people/technology from your laboratory;
	Determining the annual sales and employment of those companies;
	Estimating annual tax revenue from those companies (it can be many times the lab's annual operating budget);
	Measuring laboratory revenue from intellectual property licensing and external research contracts;
	Estimating the sales and employment generated by such licensing and contract activity;
	Estimating the annual tax revenue from such licensing and contract activity; and
	Preparing a report or presentation explaining the above results.

The major deliverable is a report or presentation that includes a “Family Tree” of spin-off companies and/or receptor companies, spreadsheets, and graphs showing sales, employment, licensing revenue, contract revenue, tax revenue, and other relevant impacts. The model below is just one of several which we have developed for assignments such as this.

Doyletech’s Local Economic Impact Assessment Service – Measuring the Economic Impact of an Operation/Entity on the Local Community

These types of economic impact studies highlight the importance of an entity or operation’s activities in the generation of income, output, and employment in the market area serviced by the entity, typically a city or region. The models below are just two examples of approaches we have developed explicitly for assignments such as this. As part of this service, we can provide expert testimony to external constituencies on the results of the assessment. We can assist you in quantifying your economic contribution by:

	Identifying the impact of your payroll on the economy (and local consumption);
	Identifying the financial benefits received by any and all levels of government; and
	Identifying both the direct and indirect economic impacts.

For more information on this service (and how it can be applied to the impact arising from spin-off companies), download the following discussion paper:

Discussion Paper: Assessing the Impact of Spin-off Companies from Your Organization

Sample Projects:

Economic Impact Analysis of NRC-IIT Licensing and Spin-off Company Creation Activities, 1990-2006
National Research Council Canada - Institute for Information Technology (NRC-IIT)

An assessment of the employment and economic impact of licensing and spin-off company formation was conducted for the National Research Council Canada’s Institute for Information Technology (NRC-IIT). We applied Doyletech propriety models to NRC-IIT’s databases on licensing and fee-for-service data in order to quantify the employment and sales impacts arising from these activities.

A Family Tree of NRC Spin-off Companies
National Research Council Canada (NRC)

This ‘family tree’ (poster) tracks the development of companies whose origins can be traced back to the National Research Council Canada (NRC), either through a transfer of technology, or a transfer of people, or both. Several editions of the ‘family tree’ have been developed and published over the years, starting in the early 1980s.

An Assessment of CETAC-West’s Relevance Ten Years after Inception
Canadian Environmental Technology Advancement Corporation (CETAC-WEST)

This project involved an assessment of CETAC-West’s relevance to the industrial sectors in which it operates and to other initiatives (e.g. Canada’s innovation strategy and the Kyoto Accord) that have emerged during the last ten years. It was based on consultation that was carried out with CETAC-West’s major stakeholders.

Economic Impact Analysis on the Canadian Microelectronics Corporation
Canadian Microelectronics Corporation (CMC)

A comprehensive social and economic impact model was developed and executed. It provided a methodology for assessing the economic contribution being made by CMC on the Canadian economy. It was estimated that CMC has influenced the generation of $3.6 billion worth of taxes for federal and provincial governments during the past ten years. The government funding to CMC during that period was $45 million and with the support of the Canadian microelectronics industry, it supplied $125 million worth of products and services to Canadian universities. The $3.6 billion of tax revenues represented a payback to government of about $80 on every dollar invested. The broader social benefit was estimated to be $3 for every $1 of government investment.  

Economic Impact Analysis of CRC Licensing, Consulting, and Spin-off Activities
Communications Research Centre Canada (CRC)

Applying Doyletech’s proprietary methodologies, an assessment of CRC’s licensing and fee-for-service activities was conducted. An economic impact analysis was also conducted on spin-off companies that have been created from CRC over the years. These are spin-off companies that would not have been created had it not been for a transfer of people, or technology (or both) from CRC. In 2005, these spin-off companies had collective annual sales of $1.61 billion and 6,378 employees. The impact of CRC’s 961 licensing and sponsored research agreements is estimated to have generated $520 million in sales and have created 2,602 ‘person-years of employment’ over 15 years. Our study was the first of its kind to quantify CRC’s economic payback based on laboratory-reported royalty streams and contract revenues.

A Family Tree of CRC Spin-off Companies
Communications Research Centre Canada (CRC)

This ‘family tree’ (poster) tracks the development of companies whose origins can be traced back to the Communications Research Council Canada (CRC), either through a transfer of technology, or a transfer of people, or both. Several editions of the ‘family tree’ have been developed and published over the years, starting in the early 1980s.

Economic Contribution Analysis of the StarTek Call Centre on the Kingston Economy
Kingston Economic Development Corporation (KEDCO)

An economic impact assessment was carried out on the new StarTek call centres in terms of the one-time and ongoing annual impacts the 1,100 new jobs would have on the local Kingston economy. The overall direct and indirect economic impact of the call centres was estimated to be at least $38.5 million per year made up of $19.9 million in annual direct impacts and $18.6 million in annual indirect impacts. In addition to these annual economic impacts, a one-time impact arising from the startup of the centres was also determined. Our comprehensive assessment of economic impact included consideration of the following: direct corporate spending, capital and operating expenditures, local wage expenditures, property taxes generated by employees, incrementally, and local consumption models.

The Economic Impact of NRC Spin-off Companies on Ottawa-Gatineau
National Research Council Canada – Regional Innovation Centre Ottawa

There are 99 technology companies in the Ottawa-Gatineau region whose origins can be traced to either the transfer of technology or people from the National Research Council Canada in Ottawa. In 2003, these ‘spin-off’ companies in aggregate employed 5,013 people, had sales of $751.9 million, and a local payroll of $351.3 million. The local economic impact of these companies was estimated to be $587.7 million, equal to about 75% of NRC’s total annual operating budget which was $792.7 million in FY 2002-2003. The estimate was arrived at by applying income models to both the spin-off companies and the supply companies that Doyletech considered to be appropriate for converting employment figures into economic impact. Our proprietary income models for various types of technology companies are based on over 35 years of working with technology companies.

Broadband Communications in Eastern Ontario: Observations of the Impact on Rural Communities
Industry Canada

A series of interviews with individuals in Eastern Ontario were conducted to assess the impact of the availability, or lack of availability, of broadband communications in their communities. The main purpose of the interviews was to develop a realistic and non-speculative comparison of the changing conditions of communities with broadband access with the conditions of those without it. Broadband access was assumed to refer to the ability of a person with a computer to access the Internet at data rates in excess of one megabit per second in both directions. The interviews and research were particularly focused on eight communities, four that have good access to broadband (Embrun, Carleton Place, Hawkesbury, and Casselman) and four that do not (Merrickville, Spencerville, Lanark Highlands, and Deep River).

A Family Tree of Carleton University Spin-off Companies
The Carleton University Foundry Program

The ‘family tree’ is a poster tracking the genealogy of firms, whose creation has been influenced by Carleton University. Specifically, the criteria used to classify a company as part of the poster, or ‘family tree’ as we call it, are those companies that have been founded or co-founded by students, staff and/or faculty, and alumni or from technology developed at Carleton University. This project involved significant survey and research activities to identify appropriate firms and obtain the necessary genealogy information. Several marketing collaterals were developed in addition to the poster, as well as an online database containing information on each spin-off company.

Economic Impact Analysis on Precarn Incorporated
Precarn Incorporated and Industry Canada

An economic impact analysis was conducted on Precarn Incorporated.

Communications Research Centre: Contribution to the Canadian Economy and Recommendations for the Future
Communications Research Centre Canada

This study assessed the economic contribution of the Communications Research Centre to the Canadian economy. The economic impact was based on corporate and personal income taxes generated by companies whose sales, employment, and profits were directly affected by CRC’s activities.

A Model for Estimating Local Purchases Made by Ottawa’s High Technology Companies
The City of Ottawa

A profit-and-loss model for the entire Ottawa Technology Cluster (OTC) was developed to estimate expenditures on operational activities such as manufacturing and selling as well as on the capital equipment required to support those activities. The analysis was based on several assumptions which, in turn, were based on our experience. Nevertheless, the model does help to put the various elements of OTC buying power in perspective. For example, the best opportunities for economic spin-offs are obviously in the supply of COGS-related products and services. Expenditures on salaries are relatively small as a percentage of total OTC sales; it is this low ratio that accounts for the high level of indirect jobs from high technology activities.  

Economic Impact Model for the Alberta Research Council (ARC)
Alberta Research Council (ARC)

We assisted in the development of an economic payback model that was based on the processes by which technology gets turned into products, services, and processes.