ABCtech #181 20AU13 Investing in a More Productive Alberta

ABCtech #181 20AU13 Investing in a More Productive Alberta

Investing in A More Productive Alberta by Leo de Bever (AIMCO)

PPT Presentation Summary

Moonlight in the Meadows 20AUG13

Investing in Alberta’s productivity through technology and innovation is essential for future growth and competitiveness.

Future Will be What We Make It

• Alberta’s economy is primarily based on food and natural resources, with opportunities for value creation. ​
• Diversification into other sectors will remain a small part of GDP; improving productivity in the energy sector is crucial. ​
• Long-term investors can support new technologies to enhance profitability and desirability. ​

AIMCo “Big Themes”

• Energy: Technology is transforming energy production, transportation, and usage, driving productivity changes. ​
• Food: Global food supply must double in 20 years to meet rising demand. ​
• Materials: Resource use intensity relative to GDP will decrease, but demand will grow in developing countries. ​
• Enabling Technology: Robotics can address labor shortages and boost industrial production. ​

Future Is Better Than You Think

• Exponential growth in technologies like computational systems, wireless networks, and biotechnology is expected.
• DIY innovation is gaining importance, with a resurgence of backyard tinkering.
• Techno-philanthropy is directing wealth from the high-tech revolution to solve global challenges.
• By 2020, a billion people will join the wireless world, enhancing knowledge dissemination. ​

Innovation is Accelerating

• Advances in power generation efficiency for wind and solar energy are notable. ​
• Innovations include carbon-neutral fuels from algae and wood fiber, and more productive crops. ​
• The cost of genome sequencing has dropped below $1,000, enabling new medical diagnostics. ​

2013 Announcements

• Lockheed is developing a low-cost desalination method using graphene screens. ​
• Philips plans to release a new LED lamp with 200 lm/W efficiency by 2015.
• A new “heuristic” chip will operate at one-fifth the current energy cost, prioritizing speed over accuracy. ​

Technology Oil

• High oil prices encourage conservation and substitution, impacting production costs. ​
• Technology is expected to lower the marginal producer’s price and improve efficiency in oil processing. ​

Investor Dilemma

• Only 20% of feasible ideas are economically viable; initial R&D funding is often government-driven.
• Canada lacks a large-scale equivalent to institutions like the US Department of Defense or Germany’s Max Planck Institute.

Who Will be Future Players

• Traditional VC models are costly and have not outperformed listed markets.
• Institutional investors like AIMCo are moving towards an enhanced angel model for early-stage investing. ​

Institutional Role in Funding Start-ups

• Institutional capital can reduce costs significantly compared to traditional VC models.
• Long-term focus allows for patient capital, which is beneficial for commercialization of startups.
• There is a need for better identification of promising early-stage firms. ​