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High-Tech Companies Thrive in Canada’s Technology Triangle

McAfee Inc. executives knew they needed to add more research and development capacity to increase their software offerings. And it didn’t take them long to find the ideal location to grow the business.



  [ 11/5/2004 ]  By: Lance Yoder   Related Link...  Print This Article  Reprint/License This Article  

In October, McAfee, based in Santa Clara, Calif., announced that it would expand its software research and development operations in Waterloo, Ontario. McAfee produces software that protects computer networks and systems from critical outside threats.

The company will nearly triple its current facility in Waterloo, going from 5,000 to 13,000 square feet, along with the potential to double the work force from 50 to 100 employees.

“The expansion of our Waterloo initiative supports and reaffirms the company’s mandate to hire the best local talent available,” said Mark McArdle, vice president of consumer product development for McAfee. “Our Canadian team is responsible for design, development and testing of some of the best software consumer security products on the market.”

McAfee is expanding in a section of Waterloo known as Canada’s Technology Triangle, which is an economic development partnership marketing the Waterloo region, and the Ontario cities of Kitchener and Cambridge.

The region is popular with high-tech companies for several reasons. The University of Waterloo has close connections with Silicon Valley, there is no language barrier and a highly skilled work force is available.

Canadian and Ontario research and development incentives also make the region an attractive place for technology businesses to establish operations.

In addition, the University of Waterloo continues to be on the cutting edge of research and development.

The university annually produces 10 percent of Canada’s engineering graduates, and in October, it opened a state-of-the-art School of Architecture.

The Canadian government and the provincial government of Ontario each contributed $4.1 million (Canadian) to the project, with the city of Cambridge and the Cambridge Business Consortium covering the rest of the $27 million cost.

Technology companies from many industries are expanding and relocating in Canada’s Technology Triangle.

In September, San Jose, Calif.,-based Nuvation opened a design center in Waterloo. Nuvation provides printed circuit board development and embedded software design services to technology companies around the world.

Workers at the new facility will develop software products for some of Nuvation’s fastest-growing markets.

Waterloo was selected for its engineering talent, entrepreneurial spirit and familiar culture, said Michael Worry, CEO of Nuvation.

“We are exceptionally familiar with the region and operating there,” he said. Chris Hallahan, vice president of sales and marketing for Nuvation, said many of the company’s clients are seeking an alternative to offshoring for cost-sensitive projects.

“Our Waterloo Design Center offers top-tier design talent without the barriers of physical distance, culture and language inherent in the offshoring model,” he said. “Our clients have come to rely on Nuvation’s engineering excellence, and this organically grown extension adheres to our world-class methodologies and culture. The WDC is a natural extension of our capabilities and is seamless to our clients.”

The Canadian technology industry, like the rest of the world economy, has struggled through a big of a flat spot during the past several years. But the slowdown in growth seems to have bottomed out.

In October, Medicine Hat, Alberta, hosted the second annual Unmanned Vehicle Systems conference. The UVS conference is a gathering of military leaders, local and national governmental leaders, and industry executives.

UVS technology includes air, sea and ground-based vehicles that are operated via remote control. Presently, the primary use of the technology is for military purposes. In the future, however, the technology could be used for civilian purposes, such as searching an oil pipeline for spills.

Attendees to the UVS conference came from as far away as Japan, Sweden and the Middle East. One of those in attendance was Bob Palmer, vice president and general manager of Schreiner Canada. Schreiner is a manufacturer of unmanned vehicles.

“When Schreiner acquired the target product line from Bristol, one of the major decision was where to relocate,” Palmer said. “We chose to remain in Medicine Hat because of access to the availability of critical skills and the attractive business climate. The success of Schreiner Canada during the past five years validates this decision.”

 



 
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