Study Methodology

Overview

As summarized in Figure 5.1, the study methodology involved the following components:

• Selection of a representative sample from the project database
• Review of project files for descriptions and background of sampled projects
• Review of performance indicators for sampled projects
• Interview of project recipients and key industry informants
• Assessment of the interview results
• Identification of economic impacts and benefits produced by WD’s investments
• Review of external data for industry characteristics and trends
• Development of a SWOT and trend analysis for the Western Canadian life sciences cluster
• Preparation of conclusions and recommendations.

Figure 5.1 Study methodology

Study sample

The project database provided by WD was the key source of information regarding projects in the study population. From the project database we selected a representative sample of 49 projects that reflected WD’s investment activity across the four provinces (including several multi-regional projects). The sample of 49 projects was selected so as to be representative of WD’s investment in terms of regions, number of projects and size of investment.

Table 5.1 summarizes the characteristics of the study population and the study sample.

Table 5.1

Table 5.1	Study Population			Study Sample
Region	Clients	Projects	WD Funding	Clients	Projects	WD Funding
Manitoba	15	26	$40.6	7	8	$ 26.9
Saskatchewan	13	22	$23.1	5	7	$11.0
British Columbia	24	60	$27.0	16	20	$10.1
Alberta	19	42	$35.7	10	12	$12.8
Multi-Region	3	4	$ 4.4	2	2	$ 3.04
Total	74	154	$130.8	40	49	$63.8

 

Interview process

For the study sample of 49 projects, interviews were conducted with representatives of each organization that received WD funding.  Throughout this report these individuals are referred to as “project recipients”. In total, we carried out interviews with 41 project recipients.

To provide a broader context of the life sciences cluster, additional interviews with industry professionals who were not currently receiving WD funding were also carried out. Throughout this report these individuals are referred to as “key informants” In total, we carried out interviews with 27 key informants. The names of project recipients and key informants are listed in Appendix A.

An introductory letter was sent by WD to each of the project recipients and key industry informants to advise them of the project and requesting their participation. Interviews were conducted either in-person or by telephone.

Economic impacts and benefits

To estimate economic impacts for the sampled projects we employed an input-output approach based on Statistics Canada’s National Open Input-Output Model.  We selected the input-output model approach because of its widespread use, and because it facilitates comparisons with economic impact studies of other industries and investments. Using Statistics Canada’s model, we developed and applied appropriate economic impact multipliers for each category of expenditure to arrive at the economic impacts of the sampled projects.

In contrast to economic impacts, economic benefits may be broader in scope, and may include both quantitative and qualitative measures.  Economic benefits may also describe long term or downstream activity that would not normally be captured in economic impacts. Because of the difficulties with their measurement, we have illustrated the nature and scope of economic benefits associated with WD’s investments through the use of four individual case studies.

Organization of the report

The remainder of this report is organized as follows:

• Section 6 provides a description of WD’s investments in life sciences
• Section 7 outlines the results of the interview process, and describes how WD is perceived by project recipients and key industry informants. The role of WD in supporting the life sciences cluster is discussed, as is WD’s effectiveness in delivering program support to project recipients
• Section 8 contains an analysis and discussion of the economic impacts and benefits produced by WD’s investment in life sciences
• Section 9 provides a discussion of the strengths, opportunities and challenges for Western Canada’s life sciences cluster drawn from comments made during the interview process.  Also included in Section 9 is a synopsis of the results from PricewaterhouseCoopers and BIOTEC Canada’s, Canadian Life Sciences Industry Forecast 2006
• Section 10 provides a comparative analysis of technology commercialization programs across select jurisdictions
• Section 11 concludes the report with our observations, recommendations and conclusions drawn from the interview results and review of external data sources.