2005

KNOWLEDGE ECONOMY REPORT CARD

2006

THE FOLLOWING MEMBER ORGANIZATIONS SUPPORT NOVAKNOWLEDGE:

KNOWLEDGE LEADERS
Acadia University • Aliant • Atlantic Canada Opportunities Agency • BMO Bank of Montreal • Canada Revenue Agency
• Capital District Health Authority • Clearwater Fine Foods Inc. • Dalhousie University • DownEast Communications
• Grant Thornton LLP • Greater Halifax Partnership • GrowthWorks Atlantic Ltd. • Halifax Metro Centre
THE ENVIRONMENTAL ECONOMY
• Halifax Regional School Board • Human Resources and Skills Development Canada • IBM Canada Ltd. • Industry Canada • InNOVAcorp SEIZING OPPORTUNITIES
• Insurance Bureau of Canada • Keane Canada Inc. • League Data • McInnes Cooper • MedMira Inc.
• Michelin North America (Canada) Inc. • Mount Saint Vincent University • MT&L Public Affairs Ltd. • Nortel • Nova Scotia Business Inc.
• Nova Scotia Community College • Nova Scotia Department of Education • Nova Scotia Department of Environment & Labour
• Nova Scotia Department of Intergovernmental Affairs • Precision BioLogic Inc. • Saint Mary‘s University • Scotiabank
• Sierra Systems Group Inc. • The Barrington Consulting Group Inc. • Trade Centre Limited
• Workers‘ Compensation Board of Nova Scotia • xwave, an Aliant Company

ASSOCIATES
Acadian Seaplants Limited • Accelerator Inc • Atlantic Provinces Economic Council • BioNova
• College of Registered Nurses of Nova Scotia • DDA Solutions • Ergoworks Atlantic • Genome Atlantic • Halifax Chamber of Commerce
• Impact Communications Group • KPMG • Maritime Travel • Nova Scotia College of Art & Design • Nova Scotia Provincial Library
• Nova Scotia Teachers‘ Union • Pictou Regional Development Commission • Scribendum • The Globe and Mail
• Theriault Financial Inc. • Tourism Industry Association of N.S. • WBLI Chartered Accountants

Presenting Sponsor:

Gold Sponsors: Government Sponsors:

To find out more about innovation in the province of Nova Scotia visit novascotialife.com www.novaknowledge.ns.ca
 ACKNOWLEDGEMENTS
Many individuals and organizations contributed to this Report Card,
and the report represents the consensus reached among them. The Editorial PRESENTING SPONSOR
Committee, consisting mostly of volunteers, did the largest share of the work.

EDITORIAL COMMITTEE
Gillian Wood Dalhousie University (Chair)
Dean Bouchard Halifax Port Authority (Chair Environmental
Sustainability Subcommittee)
Michael Gardner Gardner Pinfold Consulting Economists
Ltd. (Chair Fundamentals Subcommittee)
Steve Machat Clean Nova Scotia
(Chair Climate Change Subcommittee)
Len Preeper Thinkwell Research GOLD SPONSORS
(Chair Awareness Subcommittee)
Jonah Bernstein Nova Scotia Department of Energy
Deborah Carver Nova Scotia College of Arts and Design
Kay Crinean NovaKnowledge
Jim Fletcher Jacques Whitford
Michael Hingston Environment Canada
Eric Hundert Environment Canada
Rick Joseph Nova Scotia Environmental Industry
Association
Stephen King Halifax Regional Municipality
Tony Lamport Nova Scotia Office of Economic
Development
Marc Lewis Impact Communications Group SILVER SPONSORS
Ben McBeth Nova Scotia Department of Finance
Ron McLeod Telecom Application Research Alliance
Scotiabank Group is proud to support the Cathie O’Toole Halifax Regional Municipality
John Odenthal Halifax Global
Dick Smith † Canadian Manufacturers and Exporters
Kevin Smith Teknion Furniture Systems
Meddy Stanton Nova Scotia Office of Economic
Development
Darin Steeves Nova Scotia Business Inc.
Katja Stoessel NovaKnowledge
Anne Thomson Industry Canada
Julie Towers Nova Scotia Department of Environment

R E P O R T C A R D Brian Watson
and Labour
Nova Scotia Office of Economic
Development
Sirje Weldon Canadian Manufacturers and Exporters

ORGANIZATIONS THAT FREELY PROVIDED

DATA AND ADVICE:
Canadian Federation of Independent Business GOVERNMENT FUNDING PARTNERS
Dillon Consulting
Eco-Efficiency Centre
Ecology Action Centre
Environmental Defense
Green Power Labs Nova Scotia Office of Atlantic Canada
novascotialife.com Economic Development Opportunities Agency
Nova Scotia Power Inc. Nova Scotia Department
Environment Canada
of Energy
Industry Canada
PAID PROFESSIONALS Nova Scotia Department
of Environment and Labour
Eleanor Beaton (writer)
Patrick Brannon (data analyst)
TABLE OF CONTENTS
THE ENVIRONMENTAL ECONOMY 3-11
ATTITUDES TOWARDS THE ENVIRONMENT 12
IMMIGRATION AND VENTURE CAPITAL 18-19
MEETING OUR TARGETS
WHAT IS NOVAKNOWLEDGE? 19
ACKNOWLEDGEMENTS 21
THE ENVIRONMENTAL
ECONOMY – SUMMARY
In previous Report Cards, NovaKnowledge has
measured and reported on various components
of innovation such as venture capital, education
and immigration. This year, we’re taking a look
at what we believe to be an important area of
opportunity for enhanced innovation – the
environmental economy.
Rising oil prices, the threat of climate change
and growing concern over the sustainability of
our natural resources is revealing new
opportunities for growth and advancement in
the knowledge economy. As Nova Scotia’s Solid
Waste-Resource Strategy has shown, protecting
the environment can result in exciting new
opportunities for value-added manufacturing,
innovation, and enhanced competitiveness.
Businesses have a lot to gain from the
environmental economy. Sustainable companies
report increased efficiency and reduced
operating costs, greater productivity and
reduced liability. And with an increasingly
SUMMARY 2
FUNDAMENTALS 13-17
ENDNOTES 20
environmentally aware purchasing public,
eco-friendliness is fast becoming an essential
marketing tool.
Governments play a key role in facilitating
the transition to an enhanced environmental
economy. As countries such as Denmark and
Germany have shown, leading edge regulations,
and appropriate incentives and procurement
set the stage for environmental innovation
and enhanced global competitiveness.
But governments can’t do it alone. That’s why
NovaKnowledge set out to highlight the
opportunities in what could be the biggest driver
of growth and innovation in the future – the
environmental economy. The challenge is
formidable – transform the economic paradigm
from an economy that depletes the environment
to an economy that enhances it. But as a
growing number of economies are proving
(including, to an extent, our own) the rewards
are great – enhanced competitiveness and
productivity, and a healthy, sustainable
environment for many generations to come.
The Green Revolution – why environmental
sustainability may be one of the biggest
drivers of growth and innovation this century.
What Nova Scotia’s economy can gain from
environmental sustainability – and why we can’t
afford to ignore the environmental economy.
We’re not nearly as green as we think we are.
Results from our exclusive survey.
How Nova Scotia stacks up in Canada –
and the world.
Are we on track to meet the 2010 targets
set last year? What action has been taken,
and what’s still needed.
NovaKnowledge’s eighth annual appraisal of
the innovation cycle in Nova Scotia’s economy
reveals some clear opportunities for growth
as well as some nagging shortcomings. As our
fundamentals section shows, we continue to be
strong in areas such as education, and research
and development spending. But while we’re
strong on the research, we are still having
trouble raising capital and leveraging that
research into business opportunity. On the
upside, we’ve experienced slight growth in
productivity, wages, employment and exports,
in comparison to last year. In fact, some of our
exports such as wood products and oil and gas,
have grown very rapidly. But in the context of
today’s climate of mounting environmental
regulations, growing environmental awareness
and resource depletion, we have to wonder –
is that a true sign of progress?
© NovaKnowledge, October 2005.
All rights reserved.
 THE INNOVATION CYCLE

Innovation is the ability to create and commercialize a sustainable source of expansion for a small economy like
novel idea or process more quickly than the competition. Nova Scotia’s. It is a continuing cycle of inter-linked
It is at the core of economic activity and is the most activities that together drive economic improvement.

Public and private sector investment in basic THE Innovation at the company level (business start-
activities leading to innovation (R&D, human NS PR ups, venture capital investment, adoption
resources and lifelong learning) ATIO O of new technology and commercialization
ND

CE
of research)
U

SS
FO

7 9 10
THE

8 12 11 12

The results: higher revenues for Increased output per employee

firms and higher standard of living. 18 13 14 15
resulting from investment in
Economic and social improvements technology and training; increased

PR
E
LIN

trigger new rounds of investment and exports that both contribute to, and

O
19 16 17

DU
innovation, building the momentum result from, productivity.
M

C
of the innovation cycle. Environmental
TO

TI
VI
indicators show the big picture, measuring T TY
BO
the interaction between economic activities THE
and quality of life.

THE NEW HOW ARE WE DOING?

FUNDAMENTALS
HOW INNOVATION
KEY INDICATOR ARE WE CYCLE FIGURE
We cannot manage what we do not DOING? QUADRANT
measure. Thanks to our increasing
understanding of what is important RESEARCH & DEVELOPMENT Foundations 7
leading
for innovation, we continue to 8
LIFELONG LEARNING Foundations
update our fundamentals to include
emerging and better indicators. In VENTURE CAPITAL Process 9
lagging but
recent Report Cards these have 10
improving BUSINESS START-UPS Process
included new quality of life measures
such as subjective well-being and the ADOPTION OF NEW TECHNOLOGY Process 11

“creativity index” of cities (important 12

signs of IMMIGRATION Process
in attracting and retaining skilled, turn-around
innovative people). This year, we PRODUCTIVITY Productivity 13 14

looked at many emerging indicators 15 16 17

EXPORTS Productivity
of the complex issue of sustainability, lagging and
such as the ecological footprint. EMPLOYMENT GROWTH The Bottom Line 18 19
stuck
These new indicators are still 20 21
QUALITY OF LIFE (ENVIRONMENT) The big picture
evolving and currently have limited
availability. NovaKnowledge will
continue to find and explain
innovation indicators that are
available, reliable and innovative.

2
THE ENVIRONMENTAL
ECONOMY
INTRODUCTION
EARLIER THIS YEAR, the European Union enacted new legislation
banning 14 categories of household products from the continent’s
landfills; a move that sent retailers and manufacturers scrambling
to develop more eco-friendly products and packaging. Reminiscent
of Nova Scotia’s own stringent regulations on solid waste
management, the EU example points to the turning tide in global
environmental legislation. Overall, our rules protecting the
environment are becoming more stringent, not less.
These tough new regulations, when combined with growing
awareness about environmental issues, rising energy costs and
the reality of resource depletion, have created a new competitive
reality for business. That, in turn, has challenged us at
NovaKnowledge to take a new approach in our report on
opportunities for growth and advancement in Nova Scotia’s
knowledge economy.
By now, most of us are aware of the doom and gloom reality
that, over the past half-century, humans have altered the earth’s
ecosystems more rapidly and extensively than at any other time
in our history, resulting in environmental degradation, disease
and species extinction.1
But threats to the environment present an enormous opportunity
for innovation and new technologies that mitigate the effects of
environmental degradation. It is with this opportunity in mind that
we at NovaKnowledge have set out to report on the opportunities in
Nova Scotia’s environmental economy – an innovative, leading-edge,
knowledge-based economy that actually enhances the environment.
Yes, that’s right - an economy that enhances the environment.
It may be a novel concept, but the harsh reality of today’s ballooning
oil prices underline that it’s a concept well worth exploring.
Canada’s environment industry earned $15.8 billion in revenues
in 2002, up eight per cent from 2000.2 That’s significant growth
especially considering it pre-dates the ratification of the Kyoto
Accord.
With the province’s strong university research base and growing
capacity in life sciences, Nova Scotia is well positioned to take
advantage of the growing opportunities in environmental
sustainability. In fact, our leading edge solid waste management
strategy has already created close to $10 million in environmental
exports and employment opportunities, and resulted in net savings
of as much as $167 million.3
3 3
We’ve made a good start, but there’s plenty more room to grow –
just look at Europe. When it comes to sustainability, North America
still lags behind many European countries – especially in our efforts
to reduce greenhouse gases.4 Are we paying a price for our less-
than-leadership position? In Denmark, the hunt for renewable
energy sources has given birth to a $4.4-billion dollar wind power
industry that employs upwards of 20,000 people.5 Thanks to its
early-mover position in the wind industry, the Scandinavian country
is sitting pretty as the world’s leading exporter of wind turbines.
The Danish example underscores the benefits of fostering a strong
environmental economy. Finding those same opportunities in Nova
Scotia will require that we cut through some of the old myths
about the relationship between the environment and the economy.
According to a recent survey conducted by Corporate Research
Associates, 77% of Nova Scotians surveyed feel the state of our
environment is good. The reality, however, is that we’re not nearly
as green as we think we are. Waste generation by businesses and
households is actually on the rise.6 What’s more, Canada has the
third highest greenhouse gas emissions of the 29 OECD countries.7
What about the old story that environmental regulations are costly
to business? So twentieth century. New research suggests that
“green” companies have stronger financial returns than the overall
market.8 In fact, incorporating sustainable business practices can
save businesses money and enhance competitiveness. For example,
over the past decade, chemical manufacturer DuPont has boosted
production by nearly 30 per cent, while simultaneously cutting
energy use by seven per cent, and greenhouse gas emissions by
72 per cent. These changes saved the company US $2-billion.9
A VISION FOR NOVA SCOTIA
New research points to the fact that Nova Scotians care very
deeply about the environment10 – which is an asset, because in
today’s increasingly competitive global economy, local businesses
need to keep pace with environmental best practices if they want
to compete. Some of our closest trading partners in the New
England states are looking at ways to ensure that trade practices
take the environment into account. They have developed model
Emission Performance Standards requiring electricity suppliers to
meet strict emission limits.11
While incorporating these environmentally sustainable practices
may incur some unavoidable growing pains, we've already got
some inspiring role models to show us how it’s done. Thanks to
an ambitious national strategy that aims to achieve sustainability
within a generation (by 2025), and a move towards full-cost
pricing for environmental goods and services, Sweden took top
spot in a comprehensive study that compared the economic,
social and environmental elements of sustainability among 180
countries.12 Not only has Sweden’s commitment to sustainability
resulted in a cleaner environment, it has been a boon to domestic
industry – Sweden’s pulp and paper industry is renowned for its
innovative products and processes.13
Nova Scotia can learn a lot from the re-visioning of the Swedish
economy. The commitment to environmental sustainability would
open the door for Nova Scotian companies to develop innovative
products and technologies that meet the ever increasing regulatory
and consumer demands for enhanced environmental efficiency.
Globally and locally, the benefits extend far beyond the business
community: a clean, green environment improves the quality of
life for all Nova Scotians.14
RESOURCE STEWARDSHIP
IT’S TIME to face the ecological music: we are running an
environmental deficit, consuming resources at an unsustainable
rate. Globally, the ecological footprint – the amount of land and
sea it takes to meet our current levels of consumption – stands at
2.8 hectares per person, about a hectare more than the earth can
support over the long term.15
In Nova Scotia the story is much worse. At 8.1 ha per person,
our ecological footprint is three times the global average and 0.4
ha higher than the national average.16 That’s environmental debt
financing, and unless we shrink our footprint, it will be up to
future generations to pay the price.
Figure 1 Environmental footprint
average North American ecological footprint:
11.8 ha. per person.
Nova Scotia – 8.1 ha per person
(four times the global average and 0.4 ha
higher than the national average).
average African ecological footprint:
1.3 ha. per person.
Source: GPI Atlantic
4
But as countries such as Denmark and Sweden have shown,
a shrinking environmental footprint can create significant
opportunities for advancing the knowledge economy through
the reinvention of old processes or the development of
new technologies that reduce pressure on the environment.
And nowhere is this more obvious than in today’s energy sector
where increased concerns over energy security are driving
innovation and growth in sustainable alternatives.
IT’S ALL ABOUT OIL
Figure 2 The rising cost of energy
Oil prices have almost doubled since 1998.
SINCE 2002, real oil prices have climbed by 311 per cent,18 driving
up input costs across the board, from transportation to agriculture.
According to the Energy Information Agency of the U.S.
government, world demand for oil is expected to increase 54 per
cent by 2025 requiring an additional 44-million barrels of oil a day.
The trouble is, oil production is set to peak over the next couple of
decades.19 Even the massive expansions planned for the Alberta Oil
Sands and the Orinoco extra-heavy oil belt in Venezuela will only
make up about 5 per cent of forecasted demand by 2025.20
Coal, on the other hand, is one energy source that isn’t in short
supply – especially in Nova Scotia. It constitutes 62 per cent of
the world’s remaining energy reserves and it’s cheap – anywhere
from seven to 26 per cent of the cost of gas and oil. That might
explain why coal is the world’s fastest growing hydrocarbon fuel
source. It powers a quarter of worldwide energy consumption,21
and 55 per cent of Nova Scotia’s electricity generation.22 There’s
a catch – coal is one of the dirtiest forms of energy, with double
the carbon footprint of gas, and higher sulphur dioxide and
mercury emissions than most other energy sources.23 In fact,
Nova Scotia’s heavy reliance on coal plays a major role in our
rapidly-growing carbon emissions. (See figure 21) We’ll never be
able to eliminate emissions from coal, although it is possible to
capture or sequester them at a very high cost - meaning an end
to cheap coal. But with our vast underground reserves of coal,
Nova Scotia is in a prime early-adopter position for clean
coal technology.
What this all means, of course, is that high energy prices are
likely here to stay. And since these prices don’t factor in the
environmental, social and health-related costs of burning fossil
fuels – such as air pollution, environmental degradation and global
warming – they might not be high enough. New research and
estimates from GPI Atlantic suggest that in 2000, Nova Scotia’s
energy sector inflicted as much as $1.8 billion dollars in social and
environmental damage thanks to greenhouse gas emissions.24
These costs reflect a full cost analysis of a variety of health, well-
being and productivity indicators. While they don’t traditionally
make their way into corporate ledgers or consumer pocketbooks,
these costs exact their price on our environment and health, as
well as the environmental legacy we leave for future generations.
The increasing costs associated with traditional energy production
also underscore the opportunities for innovation and growth in
alternative renewable energy sources.
Figure 3 Our dwindling oil reserves
Scientists estimate oil production has already peaked in the United States, Russia and
Europe. Oil production from other sources is expected to peak over the next two decades.
ALTERNATIVE RENEWABLE ENERGY
Once considered a costly alternative to traditional coal, hydro
and petroleum-based power, renewable energy is becoming
increasingly cost-competitive. And with zero emissions of
greenhouse gases and next to no pollution, renewable energy
sources such as sun, wind, geothermal, and tidal power are far
less costly to society and the environment. For example, geothermal
technology has become the heating technology of choice for 3,000
homes in Manitoba and a proposed 13,000-plus home subdivision
in Winnipeg, where residents are expected to save between 30 –
50 per cent on their home heating bills while significantly reducing
their greenhouse gas emissions.25 Here in Springhill, Nova Scotia, a
former coal mining town of 4,400 started a geothermal industrial
business park. Currently eleven businesses and industries are taking
advantage of savings in their energy bills.26
Market maturity vs
Figure 4
technological maturity
The shaded portion of the graph illustrates key opportunities for innovation and early
adoption– emerging markets combined with relatively new technology. As this graph
shows, with our record-setting tides and ever-present winds, Nova Scotia is poised to
innovate and/or take advantage of new technology in the emerging offshore wind and
tidal power market.
Wind is the fastest-growing energy source in the world, and
Canadian wind power capacity could jump as high as 10,000 MW
by 2010, compared to 316 MW in 2003.27 Worldwide, wind
power doubled capacity three times during the 1990s and each
doubling reduced overall power production costs by 15%.28 By
2013, a kilowatt-hour of wind power will cost roughly the same as
coal and natural gas.29
While wind turbines are a relatively new addition to Nova Scotia’s
landscape, wind may become a significant source of renewable
energy for the province. In August, Nova Scotia Power signed a
deal to buy electricity from a new $60-million dollar wind power
facility on the Tantramar Marshes near Amherst. That project is
one of several signed in the past two years set to boost the
province’s renewable energy capacity by 100 megawatts: raising
our percentage of rewnewable energy to 12.5 per cent.30
Regarded as an economically and technically feasible form of
renewable energy, offshore wind could hold great potential for
Nova Scotia. Still relatively cutting-edge, offshore wind farms are
already planned or operating in Britain, Germany and Denmark.31
Wind isn’t the only renewable energy source poised for future
growth. By 2020, solar power could add as much as 3,295 MW to
Canada’s electricity grid each year. And while it remains among the
more expensive sources of renewable energy, the cost is estimated
to fall by as much as 50 per cent over the next decade as
technology improves.32
As figure 4 shows, worldwide, tidal power is an emerging energy
source. With our record-setting tides, Nova Scotia could have
5
Report Card 2005/2006
PROFILE MacTara Limited
WHEN Nova Scotia’s biggest
sawmill sought to expand production
in 1997, it came face to face with an
obstacle the size of Citadel Hill –
60,000 additional tonnes of bark and
sawdust bi-product, otherwise known
as “hog fuel.”
The sheer volume of bark and
sawdust made it imperative that
MacTara Ltd. find a productive way to
deal with its waste stream. “Bi-
product was becoming a major
problem not only for us, but for
sawmills across the province,” says President and CEO Gordon Shupe.
It was industry standard at the time to burn some of the bi-product
as fuel and dump the rest, but the forward-thinking management
team at MacTara identified a valuable business opportunity.
Although there was little demand for bio-fuel locally, Shupe says
the Swedish market was on the hunt for cleaner energy, namely in the
form of wood pellets, made from compressed sawdust. As part of its
effort to reduce greenhouse gas emissions, Sweden had increased
domestic taxes on fossil fuels such as coal and subsidized wood pellet
burners. As a result, by the late 1990s the country was consuming
approximately 800,000 tonnes of pellets annually, outstripping its
domestic supply.
Enter MacTara and its mountain of hog fuel.
The company seized upon the Scandinavian opportunity, hiring 20
new employees and building a $16-million wood pellet mill in Upper
Musquodobit, one of the largest of its kind in the world. By 1998,
the company was exporting 60,000 tonnes of wood pellets to the
Swedish city of Helsinborg, for use in an industrial burner that helps
heat the city.
In recent years, MacTara has seen major growth in its wood pellet
business. European demand for wood pellets has grown considerably.
In 2003, the company signed a major deal with an industrial energy
producer in the Netherlands. MacTara’s annual wood pellet
production has risen to 85,000 tonnes, and eliminated its waste
stream entirely. The company also transforms an additional 50,000
tonnes of waste from other sawmills into wood pellets each year.
Equally as important, the new markets for wood pellets have helped
to soften the blow of Canada’s softwood lumber dispute with the US,
which Shupe estimates has cost MacTara $8.5-million so far.
“Wood pellets gave us a way to increase productivity without
increasing production costs too much,” he says. “The fact that we’re
able to play a part in the fight against global warming has been
an important added benefit.”
Promoting environmentally sustainable forestry practices
is another way in which MacTara ensures its long-term profitability.
Through its Forest Stewardship Program, the company has spent close
to $2.5-million in education, silviculture, and replanting initiatives
across the province.
As MacTara rolls out its long-term growth strategy, Shupe says a
major goal is to begin selling wood pellets closer to home.
“It would be nice to see Nova Scotia join European countries
in embracing alternative energy sources, ” he says. “To date, there
hasn’t been much interest.” Growing the local market will require
a “mind set change in our approach to energy,” he says.
Until that shift in attitude happens, MacTara will have
to continue shipping its clean bio-fuel someplace else.
6
tremendous competitive advantage in tidal power. In fact the Nova
Scotia Power prototype tidal facility in Annapolis Royal is one of
only three tidal power plants in the world. A new provincially
sponsored research project in the Bay of Fundy could push the
region even further in the development of tidal technology.33
DEPLETING RESOURCES
Although energy has taken centre stage in the public forum, oil
isn’t the only natural resource in decline. In fact, as our ecological
footprint attests, many of the earth’s resources are in threat of
being over-harvested. This ecological reality raises some tough
questions about the future of Nova Scotia’s natural resources
sector that contributes $1.8 billion to the provincial GDP and
employs close to 20,000 people.34 What’s more, it figures
prominently among our fastest-growing exports (See figure 16).
But recent research questions the ecological sustainability of this
growth, which in turn, builds the case for enhanced innovation
and value-added capacities in Nova Scotia’s natural resources
sector.
OCEAN RESOURCES
Long an economic backbone in Atlantic Canada, questions abound
about the sustainability of the fishery. Regional ground fish
landings have actually increased by 50 per cent since 1995. In
Nova Scotia, ground fish exports are valued at more than $250-
million annually.35 Nevertheless, there is growing concern that over-
fishing has seriously threatened the future of the industry.
Of course, there is more than fish in the sea. The ocean resources
sector is an area of major opportunity for advancement in Nova
Scotia’s knowledge economy. The nutraceuticals industry in
particular has created major opportunities for innovative
companies such as Acadian Seaplants and Ocean Nutrition to
export knowledge-intensive, high value products to a growing
international market.
FORESTRY
The forestry business is booming. Canada’s largest industrial
contributor to GDP (3 per cent),36 the industry directly employs
11,000 Nova Scotians and adds $1-billion to provincial exports
each year.37 But new research suggests that current forestry
practices are unsustainable. In 2000, we harvested 6.5 million
cubic metres of wood from our forests, and 99 per cent of this
came by way of the clear-cut.38 In fact, the total area of clear-cut
has doubled each year for the past ten years. This accelerated rate
of cutting, combined with the almost complete loss of old growth
forests, has cut our carbon storage capacity by 38 per cent,
costing an estimated $1.3-billion in lost value.39 Ensuring the
industry’s viability over the long-term may mean investigating
innovative, higher value forestry products.
 Nova Scotia has some shining examples of sustainable
forestry. The woodlot at Windhorse Farm, a New Germany-
based wood products and organic food producer, is the oldest
experiment in low-impact forestry in Canada. First
harvested in 1840, the woodlot has been selectively harvested
every year since then, producing a total of 8.5 million board
feet of high quality lumber, suitable for hardwood flooring
and cabinets. Astonishingly, the woodlot has the same
amount of standing timber today as it had in 1840 - 2
million board feet. According to owner Jim Drescher, if the
woodlot had been clear-cut every 50 years – the usual cycle for
clear-cutting – both its composition and economic value
would have suffered enormously. Not only would the quality
of each successive harvest be lower, producing cheap wood, but
the total harvest would have been less – only 6 million board
feet with half the value of high quality lumber.
AGRICULTURE
From its use in synthetic fertilizers, to the operation of farm
equipment and food transport, petroleum is a critical agricultural
input. But while rising oil prices have increased most production
costs for farmers, they have also created some new hi-tech growth
opportunities for the industry.
Growing awareness about the environmental, health and cost
implications of our food purchases is fuelling interest in both the
local food and slow food movements, which support local
agriculture. According to Environment Canada, foods in the average
Canadian meal travel roughly 2,000 km, or “food miles” from their
point of production to their point of consumption.40 With high oil
prices boosting the transportation costs associated with each food
mile, locally produced agriculture gains a competitive edge over non-
local foods. A New Zealand lamb chop, for example, travels almost
200 times further than a locally produced lamb chop.41 In addition
to paying higher transportation costs for non-local foods, we pay
higher environmental costs too. A recent study found that a
kilogram of those same New Zealand lamb chops yielded over eight
kilograms of carbon dioxide emissions versus seven grams of
emissions for the same quantity of local lamb.42
Meanwhile, new research into agricultural waste and its uses is
underscoring emerging opportunities for innovation in the
agricultural sector. For example, new research from Nova Scotia
Agricultural College (NSAC) suggests that compounds found in
apple peelings may help protect brain cells against the devastating
affects of neurodegenerative diseases including Alzheimer’s,
Multiple Sclerosis and Parkinson’s. This new, high-value use for
apple peel couldn’t come at a better time for the local apple
industry, which is losing market share and value thanks to global
over-production and drastically increased apple imports.43
Nova Scotia is, of course, no stranger to the concept of waste as
resource. The economic opportunities that have arisen from the
province’s Solid Waste-Resource Management Strategy underscore
that we can apply stewardship principles to the use and disposal of
all products – including agricultural and residential waste.
MARKET DEMAND AND
COMPETITIVENESS
SINCE THE EARLY 1990s, five major firms – IBM, British Telecom,
Alcan, NorskeCanada and Bayer – have saved US $2-billion by
adopting innovative new technology and business practices that
have reduced their carbon emissions by more than 60 per cent.44
As these companies show, environmental sustainability isn’t just
about improving the environment – it’s about improving
competitiveness. Sustainable companies report increased efficiency
and reduced operating costs, reduced liability and risk, and
enhanced corporate and brand image. Over the past decade,
the companies in the Dow Jones Sustainability Index World
outperformed the Dow Jones Global World companies.45
According to Harvard Business School Professor Michael Porter,
pollution or waste signals the inefficient use of resources,46 which
has negative effects on the corporate bottom line. Canadian
businesses and households spent $5.1-billion on waste
management and remediation services in 2002. The irony is that a
good portion of that “waste” likely represented an opportunity for
enhanced efficiency or innovation.
Here in Nova Scotia, we have plenty of home-grown examples
that point to the link between sustainability and competitiveness.
The cost of dealing with upwards of 60,000 tonnes of bi-product
pushed MacTara Ltd. to turn a former waste stream into a multi-
million dollar wood pellet export business (See profile on page 6).
Meanwhile, in an effort to improve resource productivity,
Minas Basin Pulp and Power is about to turn the switch on
a new project that will trap and re-use factory process heat.
(See profile on page 9).
THE CUSTOMER IS KING
Efficiency isn’t the only factor driving the competitiveness of
sustainable companies. Customer demand for sustainable products
and business practices is increasing across Nova Scotia and the
world. Between 1997 and 2001, the international market in
organic food grew by 90 per cent.47 According to US industry
analysts at JD Power, hybrid car sales doubled in 2004, reaching
85,699. That growth rate isn’t expected to slow down for at least
the next couple of years.48 In Nova Scotia, according to a recent
environmental survey, 83 per cent of Nova Scotians said they
would not shop at a company with a poor environmental record.49
The need to keep pace with an increasingly environmentally-aware
customer base is behind Nova Scotia Power’s decision to go above
and beyond voluntary renewable energy targets set out by the
provincial government. In August, NSPI’s chief executive officer
Chris Huskilson told the Chronicle Herald that customer demand
for renewable energy is driving the company’s decision to buy
more power from alternative renewable sources. Results from the
company’s Customer Energy Forum suggest that the 73 per cent of
customers surveyed wanted to aggressively control air emissions –
82 per cent said they’d pay more in order to do so. NSPI’s share of
renewable power has climbed 25 per cent since 2002.51
7
Report Card 2005/2006
PROFILE Thermo Dynamics Ltd.
THE recent surge in energy prices
comes as little surprise to Peter
Allen, the founder and President of
Thermo Dynamics Ltd., a Dartmouth-
based manufacturer of solar thermal
equipment.
A mechanical engineer, Allen also
teaches at Dalhousie University. While
Thermo Dynamics stemmed from
the successful commercialization of his
university research, the seeds for the company were sown during
his early experience in the oil and gas sector.
“I learned enough about dwindling energy supplies to know that
sooner or later we’d have to find an alternative,” he says. 24 years after
starting his company, as rising oil prices add extra fuel to the business
case for alternative renewable energy, Allen says the decision to focus
his attention on solar thermal technology is paying off.
From its 8,000-square-foot facility in Burnside – entirely solar
heated – the company researches, develops, manufactures and installs
solar-powered water heating systems for residential, commercial and
industrial customers across the world. The company’s residential
systems, which cost approximately $4,500 to install, result in energy
savings of between $300-$1,000 per year.
One of only a handful of solar energy companies in North America,
Thermo Dynamic’s solar fin technology is recognized as among the best
in the world.
The irony of the accomplishment doesn’t escape Allen. “Canada
could be the worst place in the world to have a solar energy company,”
he jokes, referring to the nation’s prodigious reserves of uranium,
natural gas and fossil fuels. Unlike countries such as Germany, the
Netherlands, Japan and China, who are rapidly adding to their solar
capacity, Allen says neither Canada nor Nova Scotia have shown much
interest in solar technology. While Allen estimates that solar energy is
probably more popular in Nova Scotia, on a per capita basis, than in the
rest of the country, the nation’s spending on solar energy is one-sixth
the world average.
Allen says limited access to capital has made it harder for his
company to finance enhanced product development and applied
research, and thereby retain its edge in an increasingly competitive
global market. The reason: a disruption in the Innovation Cycle, a
series of inter-linked activities that NovaKnowledge believes is critical
to economic improvement and competitiveness. When companies fail
to secure adequate financing – their capacity to innovate shrinks.
“We’ve found it virtually impossible to get the investment we need
to stay competitive with European producers,” Allen says.
In Germany, the federal government has spent billions in incentives
and research investment to help develop solar technology and capacity,
while simultaneously increasing taxes on petroleum products to
discourage consumption of conventional fuels. Germany has become a
world leader in renewable energy generally, and solar technology in
particular. As a result, Allen says that North American companies are
losing their share of the European market, an international hotbed in
alternative energy.
Given this competitive environment, it is remarkable that Thermo
Dynamics has maintained its leadership position in solar-powered
water pumps, believed to be the most technically superior design in the
world.
Allen credits this accomplishment to one business driver in which
the province has particular capacity – its well-educated workforce.
“We’ve had some excellent engineers with very strong ideas,” he says.
”That’s been a huge factor in our success.”
He adds that, despite a lack of interest in solar technology from
the public sector, the private market for solar thermal energy is strong.
“We’ve got a great market for solar here in Nova Scotia,” he says.
“And that’s only going to grow as people become more
environmentally aware.”
8
‘‘ They’ve told us they want more
energy from renewable sources,
especially wind, and we are listening.
NSPI CEO, Chris Huskilson
ECO-ARCHITECTURE:
THE RISE OF GREEN BUILDINGS
’’
HARSH fluorescent lights. Stale air. Heating costs that soar through
the poorly insulated roof. Poorly designed workplaces have a
negative impact on employee productivity and health. But as
Herman Miller – a leading manufacturer of office equipment in the
United States found out – the opposite is also true.52 Herman
Miller invested in a new “green” factory that maximized
substituted daylight for office lights and maximized the fresh air
exchange. While the new factory cost 15 per cent more than the
average building, overall energy use decreased by 30 per cent.
What’s more, the improved working conditions doubled overall
productivity and enhanced employee attendance.
Canadians lose as much as $16.8-billion in productivity each year
due to poorly designed buildings.53 With statistics like that, it’s little
wonder that the green building market is growing. And with its
emphasis on new designs, processes and materials, it’s an area of
significant opportunity for the knowledge economy. Annually, the
industry earns approximately $580-million dollars, and boasted 34
per cent growth last year.54
That growth is behind J.D. Irving Ltd.’s plans to build a cutting
edge green industrial park in New Brunswick. Constructed with
innovative “green” building materials, and powered by a biomass
energy plant, the park will include sustainable construction
suppliers, including a new J.D. Irving-owned wallboard plant that
uses recycled synthetic gypsum.55
NOVA SCOTIA LEEDS THE MARITIMES
Encouraged by growing interest in green building, the Canadian
Green Building Council (CaGBC) created a Canadian version of the
Leadership in Energy and Environmental Design (LEED) certification.
LEED measures the sustainability of a building using a variety of
indicators including water efficiency, design excellence, materials,
and energy performance. To date, there are 11 LEED certified
projects in Canada, and six of them are in British Columbia.
According to the CaGBC, LEED-certified buildings reduce operating
costs and increase profits. The group claims that retail sales
increase approximately 40 per cent when buildings use natural day
lighting (a LEED indicator).56 In fact, one study indicates that
although there is an average cost premium of 2 per cent to build
to green standards, the payback is in excess of 10 times the initial
investment during the life of the building due to factors such as
lower energy, waste disposal, water and maintenance costs, and
savings from increased productivity and health.

Figure 5 Building performance
Employee salaries take up the lion’s share of costs over a building’s life cycle. With
features designed to improve employee health and productivity – such as day
lighting, improved design and enhanced ventilation, LEED-certified buildings are
able to optimize the economic performance of a building over its life cycle.
In relation to the other Atlantic provinces, Nova Scotia has been
quick to take up LEED. The province currently has five LEED-
registered projects underway, more than double that of New
Brunswick and Prince Edward Island.
The Nova Scotia story is even better on the home front. The
province has the highest per capita uptake in Canada of R2000
homes, an internationally recognized system of sustainable home
construction that champions energy efficiency, low impact
construction, and eco-friendly building products. And according to
Paul Pettipas, CEO of the Nova Scotia Home Builders Association,
demand for R2000 homes is growing, which translates into a new
area of opportunity for homebuilders. While an R2000 home costs
roughly two to four per cent more than a traditionally constructed
home, it saves its owners an average of 30 per cent on the energy
bills. What’s more, each year, a single R2000 home saves 5.6 tons
of greenhouse gas emissions compared to a traditional house.
PUBLIC POLICY
THE INTERNET. Satellite communications. Computers. Some of the
most influential elements of today’s economy were kick-started with
significant support from government, either through procurement,
incentives, smart regulation or research investment. Public and
private sector investment in R&D, education and training is a
fundamental step in the Innovation Cycle, a series of inter-linked
activities that NovaKnowledge believes are essential drivers of
innovation. When it comes to the environmental economy, where
the need and opportunity for innovation is so great, the public
sector has an especially important role to play in fostering
innovation and ensuring a level playing field for cost-competitive
businesses. In Germany, for example, incentives to the solar energy
industry cut production costs by more than 50 per cent in just over
Report Card 2005/2006
PROFILE Minas Basin Pulp & Power
The Never-ending Paper Trail
THE paper trail at Minas Basin Pulp
& Power is less a straight line than it
is a Möbius strip. The Hantsport-
based paperboard manufacturer has
developed a unique system of supply
chain management that ensures the
maximum use of its resources…over,
and over, and over again.
In an industry that has had
a history of challenges with environ-
mental issues, Minas Basin is
distinguishing itself as a pulp and
paper company with a green side.
The company uses 100 per cent recycled waste to make its paperboard
– a practice that diverts about 80,000 tonnes of waste from landfills
each year.
Minas Basin Pulp & Power also leverages its relationships with
affiliated companies Crown Fibre Tube and Maritime Paper Products,
enhancing a market for its recycled paperboard. To complete the loop,
yet another affiliated company – Scotia Recycling – collects recycled
paper products from customers across the Atlantic Provinces, Quebec
and the Eastern Seaboard and delivers them back to Minas Basin.
What this means is that the fibres in a single cardboard box are used
many times over, thereby reducing the strain on provincial forests.
While this system of resource reincarnation is good for the
environment, Vice-President Dwight Whynot says his company’s
environmental practices are underscored by sound business acumen.
“We’re competing in an incredibly tough marketplace that changes
almost by the month,” he says. Major consolidation within the paper
industry, plus massive capacity increases in Asia, has placed enormous
demands on small independents such as Minas Basin to gain every
competitive advantage they can.
In Minas Basin’s case, fundamental competitive strategies such as
productivity improvement, customer satisfaction and distinctiveness
have also set the stage for enhanced environmental sustainability.
And as Dwight Whynot points out, sustainable practices have also
helped the company serve its customers better. “In the late 80s and
early 90s, being green was good,” he says. Box manufacturers were
getting pressure from customers to have 100 per cent recycled boxes.
In its ability to offer exactly what its customers wanted, Minas
Basin was able to distinguish itself from its competitors, many of
whom were still turning trees into boxes.
In recent years, the pressure to reduce costs is making the business
case for environmental efficiency even stronger. The company is
currently applying new technology that will recover and re-use factory
process heat.
Whynot says that connecting the dots between environmental
sustainability and shrewd decision-making requires a handle on yet
another business fundamental: leadership.
“Respect for the environment has been a driving force from the
owners,” he says. “They set the tone, so over the years it’s something
that has become second nature to all of us who work here.”
a decade, doubling the nation’s installed solar collectors and driving
German producers to the international forefront of solar
technology.57 Good news for the German solar energy industry, but
not so good for Dartmouth-based Thermo Dynamics, a solar
thermal energy company that had to compete with better-financed
European companies (See profile on page 8). The German case
illustrates the critical role of smart public policy in the move toward
sustainable, innovative economies.
9
SETTING TARGETS
Clear, well-articulated targets - on everything from the reduction of
greenhouse gas emissions to renewable energy - are crucial drivers
of innovation in the environmental economy. By setting targets that
are aligned with international benchmarks for environmental
management, governments are in fact signalling areas of growth
and innovation potential to businesses and researchers. This can in
turn drive businesses towards enhanced global competitiveness. For
example, Denmark’s 1990 targets for 10 per cent reliance on
renewable energy by 2000 set the stage for growth and innovation
in the Danish wind industry. Thanks to that early innovation,
Denmark is now a leading exporter of turbines.
Nova Scotia needs look no further than our own backyard to see
both the environmental and economic benefits of governments
setting specific targets for sustainability.
Nova Scotia’s ambitious solid waste-resource strategy, which aimed
to reduce the amount of garbage being sent to landfills by 50 per
cent, has contributed as much as $1.7 million in export revenues
from environmental goods and services, and injected another
$9-million in direct and spin-off employment to the province.58
These economic benefits came on top of the diversion of well over
300,000 tonnes of waste from the province’s landfills each year
(See profile on page 11).
Figure 6 Leading by example
The 11 most polluting federal departments have cut their emissions by 24 per cent
since 1990. They still have another six per cent to go in order to meet the reduction
targets set out by the Federal House in Order initiative. The reductions were
achieved through reductions in floor space and fleet size, a switch to less carbon-
intensive energy sources, and enhanced energy efficiency.
While Nova Scotia leads the world in terms of our targets for solid
waste, we are less ambitious in the renewable energy sector.
Currently, the province has set a 2.5 per cent voluntary target for
renewable energy.59 The provincially-appointed Nova Scotia
Electricity Marketplace Governance Committee recommends that
the province mandate an increase in renewable energy use to five
per cent by 2010.60 This target points to the likely rise of
10
renewable energy consumption in Nova Scotia, but it is still low
compared to the European Union, where countries have been
mandated to reach 12 per cent of their total energy consumption
from renewable sources and 21 per cent consumption of electricity
generation by renewable energy until 2010. As a result, countries
such as Finland, Portugal and Austria now get between 17- 21 per
cent of their total energy from renewable sources.61
In developing a new set of environmental indicators against which
it will measure its environmental performance, the Halifax Regional
Municipality is taking an important first step in the development of
targets. The Municipality’s first environmental scorecard, due early
2006, will provide a crucial baseline measure against which future
targets can be set. HRM has also installed LED traffic lights that
will significantly reduce overall electricity consumption For an
intersection that is completely equipped with LED this means a
reduction of 85 per cent.
SMART REGULATION
Here’s a concept: regulations don’t have to be a hindrance to
business. In fact, smart regulations can help companies become
more environmentally and economically sustainable. Over the past
two decades, and especially in today’s oil crunch, Japanese and
German auto manufacturers have a competitive advantage over
US-made cars thanks to their quick response to new fuel
consumption standards.62
In 1991, Japan enacted a law that would make products easier to
recycle. Japanese appliance producers innovated to meet the
challenge, and created products that were easier to assemble and
disassemble, thereby speeding up the production process and
improving productivity.63
In Nova Scotia, regulations banning organics and recyclables from
landfills have resulted in enormous opportunity for businesses.
Companies such as Minas Basin Pulp & Power now enjoy easier
access to OCC (Old Corrugated Cardboard), their main input,
thanks to provincial legislation that diverts cardboard from landfills
(See profile on page 9). The regulations have also prompted
companies such as Truro-based plastics manufacturer, Intertape
Polymer, to turn waste – as much as 20-million lbs of plastics per
year – into useable inputs, thereby enhancing overall efficiency.
Meanwhile, European Union regulations for e-waste have been a
boost to Amherst-based C-Vision, which exports eco-friendly
motherboards to Europe.
GREEN PROCUREMENT
With annual spending totalling close to $13-billion, the federal
government wields significant purchasing power when it comes to
green goods and services.64 An official green procurement policy is
currently in development at the newly established Office of
Greening Government in Ottawa. For example, close to half the
cars in the government fleet at Public Works and Government
Services Canada run on propane or natural gas, or are hybrids.65
A new wind turbine on the Tantramar Marsh supplies the newly
built RCMP Cumberland Detachment with about 60 per cent of its
power, saving $13,000 in energy costs annually and reducing
carbon dioxide emissions by 150 tonnes per year.
The Halifax Regional Municipality Biodiesel Project is a classic
example of how governments can simultaneously spearhead
sustainability projects and support cutting edge business. In October
2004, HRM signed a $3-million deal with Wilson Fuels to use
Report Card 2005/2006 Nova Scotia solid
PROFILE waste-resource strategy
In some business circles, “government
intervention” is sometimes seen as an
impediment. But in Nova Scotia,
some forward-thinking legislation is
proving that governments can help
make a green environment and
improve business – at the same time.
10 years ago the province of Nova
Scotia announced its intent to halve
the amount of solid waste being sent to
landfills and incinerators by the year
2000. It was an aggressive target – to reach it, Nova Scotians would
have to divert a staggering 321,000 tonnes of garbage from landfills
each year.
To accomplish this, the Province developed the Solid Waste
Resource Management Strategy, which came into effect in 1996. RRFB
Nova Scotia, a not-for-profit organization, was created as an integral
part of the province’s Strategy (it runs the province’s deposit-refund
program on beverage containers, the tire recycling program and the
paint recycling program). Four years later, the province met its target,
an accomplishment that has driven Nova Scotia to the forefront of
international best practices in solid waste management. What’s more,
it has given birth to a new industry in value-added recycling.
Barry Friesen, Solid Waste-Resource Manager for the Department of
Environment and Labour, says the crux of the strategy has been
accepting waste as a marketable bi-product. “It’s about looking at solid
waste as a resource,” he says.
Two key components of the strategy – the ban on recyclables and
organics from landfills plus appropriate incentives such as the beverage
container deposit-refund, have created a windfall of raw materials cheap
for the asking and ripe for value-added development.
Across the province, businesses are seizing the opportunity, and
proving the old idiom that one person’s junk is another’s treasure.
Amherst-based NovaPet Inc. processes empty pop bottles collected
from the deposit-refund program, grinds them into plastic flake, then
sells the product to companies that manufacture carpets and fleece.
Nearby in Springhill, used paint from across the province is collected
and recycled into new paint. In Kemptown, just outside Truro, used
tires in the province are collected and recycled into new rubber
products.
“The key has been building up an economy of scale,” Friesen says.
“Our widespread strategy has given us the critical mass of resources to
be able to support entire industries.” And because the legislation
applies across the board, Friesen says it addresses another prime concern
of business owners – a level playing field. “Predictability has given
businesses the ability to plan and innovate.”
Manufacturing isn’t the only sector to benefit. Friesen says the
province’s stellar reputation in solid waste-resource management has
given consultants a distinct competitive advantage. “Our consulting
companies are going head to head with world class competition – and
winning,” he says. “Other countries look to us as an example of how to
do things right.”
In Nova Scotia, “doing things right” has meant cleaning up the
environment AND making money. A recent study conducted by GPI
Atlantic showed that the solid waste-resource strategy has created
between $1.1 and $1.7 million in export revenue from environmental
goods and services. That’s on top of an estimated $6.5 million to $9
million in direct and spin-off employment.
While Barry Friesen acknowledges that the province has made a
good start, he cautions against any premature backslapping – after all,
the province is still only diverting about 50 per cent of its garbage.
“We’ve only done half of what we need to do,” he says, pointing out
that construction waste and discarded electronics are still piling up in
Nova Scotia’s landfills. Such a shame to let it all go to waste.
biodiesel in public transit vehicles. The deal helped Wilson Fuels
gain an early mover advantage in biodiesel and develop a domestic
market. It also provided Dartmouth-based nutraceutical company
Ocean Nutrition with a cost-effective method of dealing with the
bi-product from producing Omega 3. HRM is currently developing
new policies to enhance sustainability within their own operations,
including the use of biodiesel to heat municipal buildings.66
CONCLUSIONS
The unfortunate reality is that for much of our history, economic
growth has been tied to environmental degradation, either
through resource depletion or pollution. But new regulations
protecting the environment, growing environmental awareness,
and the reality of resource depletion, are challenging that
economic paradigm, and in the process, exposing new
opportunities for innovation and technological development.
Environmental economics also represents uncharted territory for
NovaKnowledge. But in its emphasis on innovative, knowledge-
intensive solutions to environmental threats, the environmental
economy is a fruitful area to explore opportunities for
advancement in Nova Scotia’s knowledge economy.
A focus on the three major drivers of business opportunity –
resource stewardship, market demand and competitiveness, and
public policy – reveals significant economic opportunity in the move
toward environmental sustainability. With our strong university
research base and our dynamic business sector, Nova Scotia is well
positioned to seize the opportunities. As countries such as Sweden,
Germany and Finland have shown, governments have a tremendous
opportunity to show leadership – through incentives, smart
regulations and procurement. In Nova Scotia, this type of public
policy approach to environmental sustainability would cultivate
innovation and new opportunities in a range of industry sectors,
and set the stage for enhanced competitiveness at the global level.
Add to this a strategic focus on applied research funding, and close
attention to all the key factors around the Innovation Cycle, and we
would have the elements of a powerful public policy approach to
innovative, environmentally sustainable economic growth.
We are indebted to organizations such as GPI Atlantic who have
been actively engaged in researching and developing the
environmental indicators upon which we have relied throughout
this report. One of the greatest challenges we faced was the
paucity of regularly updated indicators (both international and
national) for environmental-economic well-being. We believe more
measures for the environmental economy are needed.
Of course, NovaKnowledge was in a similar situation ten years
ago, when we struggled to develop indicators for progress in
innovation. A decade later, and innovation has become a national
measure for progress, widely accepted as a driver of economic
growth and competitiveness. Over the next decade, understanding
the key competitive drivers of the environmental economy, and
tracking the indicators, could well have the same transformative
effect on our economic priorities and performance.
11
SURVEY
SURVEY
NOVA SCOTIANS’ ATTITUDES TOWARDS
THE ENVIRONMENT
WHILE NOVA SCOTIANS are becoming increasingly supportive of
initiatives that protect the environment, recent survey results reveal
that we’re not quite as environmentally aware as we think we are.
More than three quarters of Nova Scotians rate our air and overall
environmental quality as excellent or good. But contrary to public
perceptions, Nova Scotia’s air pollution has been getting steadily
worse – not better – over the past decade. Since 1990, Nova
Scotia’s carbon emissions have increased significantly – by as much
as 1500 megatonnes per year 67.
In addition, less than half (44%) of Nova Scotians surveyed
consider themselves well-versed in current environmental issues,
and 63 per cent are unfamiliar with the agreements Canada has
made under the Kyoto Agreement, which has received widespread
media coverage. But despite that lack of familiarity with the details
surrounding the Kyoto Accord (which committed Canada to
reducing greenhouse gas emissions to six per cent below 1990 rates
by 2012), a clear majority of Nova Scotians support its ratification.
The study also reveals that Atlantic Canadians in general are
walking the environmental talk when it comes to their household
energy use and purchasing habits. Three quarters of us have cut
electricity use, four in ten have sought out products made from
recyclable materials and over half (54 per cent) avoid buying
environmentally hazardous products. Meanwhile, 56 per cent of
Nova Scotians believe they are taking more environmental action
than the average Canadian. This is up significantly since 1989, and
may reflect the province’s stringent solid waste management
regulations, which require Nova Scotians to recycle and compost
much more than the national average.
In addition, Nova Scotians have become more willing to implement
environmental safeguards, even if it costs them. 37 per cent of the
people surveyed claim they would support shutting down a local
company that polluted the environment – even if it meant losing
jobs (that’s up nine percentage points from 1997). In addition,
almost half (47 per cent) say that protecting the environment is
so important that we must enhance our efforts, even if leads to
increased government spending and higher taxes. That’s up six
percentage points since 1997. And even though the environment
doesn’t rank among the top three issues identified by Atlantic
Canadians today, which include unemployment, health care, and
the economy 68 – only a quarter of Nova Scotians surveyed feel it is
acceptable for government to cut environmental spending in order
to balance the budget.
12
Now you see it…
now you don’t.
Smog is on the rise
in Nova Scotia.
Over two consecutive days
in August 2001, the ozone
concentration – a major component
of smog – rose from 20 parts per
billion (see picture above) to 50
parts per billion (see right picture).
Interestingly, while Nova Scotians are willing to make an economic
trade-off for environmental sustainability, the survey suggests that
we aren’t buying in to the prevailing myth that environmental
regulations are costly to business and the economy. Almost half
(47 per cent) believed that the Solid Waste-Resource Strategy either
decreased, or had no effect on costs to residents. Research shows
that while the total annual operating costs for solid waste
management jumped from $48.6 million in 1989 to $72.5 million
in 2001, the strategy resulted in a net savings of $167 million,
according to GPI Atlantic’s full-cost analysis that measures economic,
social and environmental indicators. Meanwhile, 57 per cent of Nova
Scotians believe the province’s leading edge Solid Waste-Resource
Management Strategy has increased jobs and business opportunities
for Nova Scotians. That same percentage of people also believes
that Nova Scotia’s economy would improve if we were to require
businesses to adopt leading edge environmental practices.
The survey findings suggest that any movement from the public
or private sector towards enhanced environmental sustainability
would receive widespread public support. This support, in turn,
suggests that Nova Scotia is well positioned to take advantage
of the emerging opportunities in the environmental economy.
Survey data extracted from Corporate Research Associates Atlantic Quarterly -
Spring 2005 and Summer 2005. Each survey was conducted with a representative
sample of 1,500 Atlantic Canadians, 18 years of age or older. A sample of this size
is expected to yield a margin of error plus or minus 2.5 percentage points in 95 out
of 100 samples.
FUNDAMENTALS – INNOVATION CYCLE

Figure 7 Universities power research in Nova Scotia

Nova Scotia ranks third in Canada in research and development

(R&D) spending as a percentage of GDP. That’s promising for the
knowledge economy, since R&D spending is a vital driver of
innovation. As previous Report Cards have pointed out, universities
lead the province in R&D, accounting for roughly two-thirds of total
spending. The private sector share of R&D remains low, which is
troubling, as private sector R&D is more likely to lead to economic
opportunities and the completion of the Innovation Cycle.

Figure 8 Women have a lot to gain from university

As we’ve reported in previous years, university-educated Nova

Scotians earn twice as much as those with only a high school
diploma, especially for the post-baby boom generations. Women in
particular have the most to gain from attending university. A post-
secondary degree can boost earning potential by as much as 50
per cent – and it’s only at this level that women begin to earn as
much as men. Of course, since these figures include both full-time
and part-time work, the women’s low earnings at lower income
levels reflect, in part, the fact that they have a higher level of part-
time work than men.

Figure 9 Searching for our piece of the VC pie

Venture capital – a key driver in the development of innovative,

high growth companies- is still hard to come by in Nova Scotia.
Our share of VC is still far below where it should be, relative to
the size of our economy. We score lower than both Manitoba
and New Brunswick, ranking second last in Canada, on average,
over the past five years. The good news, however, is that Nova
Scotia’s share of VC has moved up again in the first half of 2005.
For a progress report on VC in Nova Scotia, see page 18.

13
Figure 10 Aspiring entrepreneurs think twice

Given that the national average is 14 per cent, Nova Scotia

has always scored fairly well in terms of business start-ups.
The entrepreneurial zeal waned in 2002 though, with a dramatic
decrease from 22 per cent to 17 per cent in the numbers of new
business entrants. A mild recession in 2001-02, combined with
poor access to VC may have created an atmosphere of caution
among potential start-ups. The good news is that business exits
decreased over the same period.

Figure 11 Investing in machinery and equipment

Neither Canadians as a whole, nor Nova Scotians in particular,

invest in new machinery and equipment as much as our
neighbours to the south. This could explain, at least in part, our
lagging productivity. Capital investment remains, after all, a key
driver of productivity advancement. In Nova Scotia, major
investments by one or two firms can cause sharp fluctuations, but
overall, Nova Scotia has resumed its upward trend after a drop in
2003, keeping pace with the national average.

Figure 12 Little movement on the immigration story

As we reported last year, Nova Scotia needs more immigrants in

order to compensate for our ageing population, declining fertility
rates and rural out-migration. And while we’ve seen a slight
increase in Nova Scotia’s share of total immigration from 1474 in
2003 to 1770 in 2004, we could still be doing better. A lot better.
This chart accounts for the immigrants who choose Nova Scotia as
a final destination, but keeping tabs on how well we’re retaining
our immigrants is tougher, as that data won’t be released until
2006. For more details on what Nova Scotia is doing to attract and
retain more immigrants, turn to page 18.

14
Figure 13 Productivity grows in baby steps…

There are different types of productivity and different ways of

measuring it. Unfortunately, any way you look at it, Nova Scotia’s
productivity levels are well below the national average. As we
pointed out last year, that’s partly because we are a service-based
economy, without a large advanced manufacturing sector to drive
economic output per hour worked. The good news, however, is
that Nova Scotia has made slight improvements in our overall
productivity. With our increased investment in machinery and
equipment, those gains could well continue.

Figure 14 …across most industries

Productivity is up across most sectors, and has pulled ahead of the

Canadian average in two service sectors. However, we still lag in
the others, particularly the all-important manufacturing sector which
contributes high added value and significant exports. Overall,
we have only inched ahead, because productivity is down in two
key sectors – construction and professional/scientific/technical.
The drop off in construction is likely due to the recent completion
of major offshore oil construction projects. Unfortunately,
construction – especially big construction – is one of the prime
boosters of productivity.

Figure 15 A small but diverse export economy

Overall exports have grown over the past decade, but we’re still
lagging behind economies of similar size such as New Brunswick
and Manitoba. On the other hand, with oil and gas, fish, rubber,
paper, wood and wood products topping our export list, Nova
Scotia’s export economy is diverse, and therefore, less sensitive to
supply or demand disruptions.

15
Figure 16 The future looks promising for exports

Nova Scotia’s fastest-growing exports are a mix of natural

resources and value-added manufacturing. The fastest growth
came from wood and wood products, which has surpassed pulp
and now ranks as our fifth biggest overall export. Oil and gas
(our largest export by far) comes second, and fruit and nuts make
an entrance on the top five list, thanks to the rapid growth in
blueberry exports.The rapid export growth in value-added
manufacturing sectors is a good sign: machinery and plastics are
in the top five, and there are some smaller contenders moving
rapidly up the list: furniture, scientific and technical instruments
and textiles. Of course, the rapid growth in wood products and
mineral fuels raises questions about the sustainability of these
resources, and therefore, the future of this export revenue.

Figure 17 Nova Scotia exports – at your service

Services account for a larger proportion of Nova Scotia exports

than in Canada as a whole, which helps to account for our low
productivity. The service sector tends to be labour-intensive and
therefore inherently less productive than manufacturing.
Transportation is by far our largest service export, both inter-
provincially and internationally. Wholesale, retail, insurance
and real estate round out the top five inter-provincial exports.
Meanwhile, business and computer services, communications,
wholesaling, tourism, finance, real estate and insurance make
up the key international service exports.

Figure 18 Jobs are growing – but balance causes concern

The good news is that our employment is growing, and more

people are working than ever before. And in August 2004,
our unemployment rate dipped below the national average for
the first time in thirty years. Our average rate of employment
growth for the past decade was 1.9% - slightly below the national
level, and a slip from just above the national average last year.
The bad news is we’re still creating four low wage jobs for every
well-paid one, compared to the national average of three to two.
All the more reason to attend to the weaknesses in our innovation
cycle so Nova Scotia becomes a more nurturing environment for
high-growth, high value-added exporting industries with above-
average earnings.

16
Figure 19 Jobs: what’s hot, and what’s not

The best occupations to have – those with high growth and high
wages – are senior management positions, professional and
management jobs in business, health care and education, middle-
level positions in trade and transportation, and transport and
equipment operators. Meanwhile the fast-growing low wage
occupations are in call centres, tourism and retail, as well as
labourers in construction and transportation. Many of the low
wage/low growth occupations reflect the impact of investments
being made in machinery and equipment: both enhanced mech-
anization and improvements in information and communication
technologies. Our ageing population accounts for the drop in
low-paying jobs in the childcare field.

Figure 20 Grow the income, shrink the footprint

Measuring carbon emissions against GDP is becoming an

increasingly favoured method of measuring sustainable economic
growth. As you can see, Nova Scotia has lots of room for
improvement. Our carbon to GDP ratio is five times that of Sweden
and significantly higher than the national average. The reason: when
it comes to energy production, Nova Scotia relies heavily on coal,
which has a high carbon footprint. Compare this with Sweden,
which uses more than 25 per cent renewable energy.

Figure 21 A long way from Kyoto

Despite the ratification of the Kyoto Accord, Nova Scotia’s carbon

emissions have increased significantly since 1997. That’s partly
because as the economy has grown, so too has electricity
consumption and generation, for which we burn a high proportion
of coal. And then there’s that trend toward larger, gas-guzzling cars
and SUVs. Canada’s commitment under the Kyoto Accord is
to reduce emissions to 6% less than the 1990 levels by 2012.
Nova Scotia’s contribution to this has not been set, but currently
we’re nowhere close to meeting the national target. Meeting it –
while still growing our economy – will require major change in
energy consumption and generation.

17
VENTURE CAPITAL AND IMMIGRATION
MEETING OUR TARGETS
• First Angel Network, a group of individual investors (“angels”)
in Atlantic Canada, was formed in 2005. They intend to bridge
the gap between entrepreneurs and investors, and will target
investments in Atlantic Canada in the $100,000 to $5 million
NovaKnowledge set targets and developed action plans in two range.
Innovation Cycle areas where Nova Scotia’s performance is weak:
venture capital and immigration (see 2004 Report Card). How has • NovaKnowledge completed Access to Capital, a report on
Nova Scotia performed in the past year, and what action has been workshops conducted across Nova Scotia (with support from
taken to accelerate progress? ACOA and the province) focussed on access to capital for
young, growing companies. The key finding was that there
is an equity financing gap in the $100,000 - $1 million range.
VENTURE CAPITAL Failure to move companies through this gap has a significant
impact on the economy and the business culture.
VENTURE OR EQUITY CAPITAL is money invested in a company in
return for a share of ownership. The investors are willing to take a
risk and wait years for a return, and also provide valuable expertise ARE CURRENT ACTIONS SUFFICIENT?
and contacts. Equity capital (from individual investors through to
formal VC funds) is used at every stage of a company’s growth. No – much more must be done. We recommend that a substantial
portion of government funding for business be moved to
Our targets for VC investment independent funds targeting early stage investment (seed funds).
in Nova Scotia: In addition, the level and efficiency of “angel” (individual) investor
$30 million / year in 2006 activity must be increased. There is scope for growth in the use of
$50 million / year in 2010 CEDIFs by businesses. Successful angel and seed fund activity in
comparable jurisdictions should be reviewed and actions for
How are we doing? Atlantic Canada developed.
$7 million in 2004.

VC investment fluctuates from year to year, and 2003 was an extremely bad year
for VC across Canada. Nationally it improved a little in 2004, but in Nova IMMIGRATION
Scotia it got worse, reaching a six-year low of $7 million. The first half of 2005
looks brighter, but we have a long way to go.
AN INCREASE IN IMMIGRATION is needed to slow demographic
trends and strengthen our innovation capacity.
WHAT ACTION HAS BEEN TAKEN?
Our targets for Nova Scotia:
• GrowthWorks Atlantic Venture Fund was formed in January
5,000 immigrants per year by 2010
2005 with financial support from ACOA. It is a labour-sponsored
75% retention rate by 2010
venture capital corporation, set up under new provincial rules
designed to ensure that money raised locally is managed and
How are we doing?
invested locally. Investors qualify for tax credits. GrowthWorks
1,770 in 2004
will grow the fund over the next five to seven years, and plans
to provide equity financing in the $500,000 to $5 million range. This was the second annual modest improvement in immigrant arrivals. Retention
rates are only measured every five years.
• Community Economic Development Investment Funds (CEDIFs)
have increased. These funds, unique to Nova Scotia, can be used WHAT ACTION HAS BEEN TAKEN?
by companies and community-based enterprises to raise equity
capital from individual investors, who qualify for tax credits. $3.2 • The province conducted consultations on immigration in fall
million was raised by eight CEDIFs in 2004, the highest annual 2004. NovaKnowledge facilitated the formation of the
amount since CEDIFs were introduced in 2000. 25-member Coalition on Immigration and the preparation
of the Coalition’s submission.
• The province eased the regulatory requirements for Nova Scotia-
based companies to obtain listings on national stock exchanges. • In January 2005, the Nova Scotia Office of Immigration was set
up, a Minister of Immigration appointed and targets (similar to
ours) for attraction and retention were set. Priorities for the first

18
 year include increased marketing of Nova Scotia as a destination,
and developing the NS Nominee Program, the province’s primary
immigrant attraction tool. Retention priorities include supporting
immigrant settlement organizations, planning an immigrant
credential assessment service and working with employers,
educational institutions and regulatory bodies to facilitate the
employment of immigrants in appropriate jobs.
• The NS Nominee Program, started in 2003, has ramped up,
and the province expects to attract 1200 immigrants through
this program alone in 2005 (immigrants also arrive under other
federal and provincial programs).
• Halifax and Regional Development Agencies are developing
plans to attract and retain immigrants in their communities.
ARE CURRENT ACTIONS SUFFICIENT?
They provide a good basis from which to start. Increases in budget
and staffing for immigration and settlement services will be
required (a four-fold increase to reach Manitoba’s level), as well
as expansion of the NS Nominee Program’s categories and overall
numbers. The long delays in the federal government’s immigration
processing also need to be addressed. Targets should be set for
educational institutions, professional and employer groups to solve
obstacles in credential recognition, qualifications and employment.

WHAT IS NOVAKNOWLEDGE?

IMAGINE A MEMBER-BASED, not-for-profit organization where NovaKnowledge is doing, you also enhance your business profile
key players in business, government, education and the and connections.
community come together and take action to strengthen
Nova Scotia’s capacity to advance new economic opportunities.
This is NovaKnowledge. MEMBER BENEFITS INCLUDE:
Since its inception in 1993, NovaKnowledge has played a • Networking events
significant role in Nova Scotia’s knowledge economy evolution • Discounts on NovaKnowledge events for you and your
and developed a national reputation for its forward-looking employees.
leadership and inclusive, networked structure. With over 170
members, NovaKnowledge is dedicated to the development • Opportunity to participate on project committees.
of a flourishing, sustainable economy in Nova Scotia. • Taking part in the Spring Luncheon Series, M.I.K.E. debates
and the Knowledge Economy Summit
NovaKnowledge is a catalyst that provokes change and influences • Company and personal recognition in NovaKnowledge
policy direction. NovaKnowledge’s success is attributed to its publications and the web site.
unique ability to bring together, under a common vision, key
players from all stakeholder groups to assess issues surrounding
the knowledge economy, engage appropriate action, and foster
growth and prosperity in Nova Scotia. TO BECOME A MEMBER OF
NOVAKNOWLEDGE:

WHY JOIN NOVAKNOWLEDGE? Register online at www.novaknowledge.ns.ca

Call us at (902)494-1510, ext. 10
Because no other organization is so uniquely positioned to deliver
a common vision on behalf of business, education, and government
to Nova Scotians. Through our volunteer committees,
NovaKnowledge defines the issues and takes action to develop
Suite 304
a flourishing and dynamic economy. 1959 Upper Water Street
Halifax, Nova Scotia
There are many benefits to being a member of NovaKnowledge. Canada B3J 3N2
As a member of NovaKnowledge you have the opportunity to Tel: (902) 494–1510
participate as a volunteer in some of the most vibrant and Fax: (902) 494–8002
stimulating project teams in the province. In supporting the work www.novaknowledge.ns.ca

19
ENDNOTES
1. UN Millennium Eco-System Assessment (2005), Millennium Ecosystem Assessment (MA)
Report, 4th edition, http://www.millenniumassessment.org//proxy/document.353.aspx
2. Statistics Canada, Environment Accounts and Statistics Division, #16F0008XIE
3. GPI Atlantic (2004), The Nova Scotia GPI Solid Waste-Resource Accounts
4. Michael Shellenberger and Ted Norhaus (2005), "The Death of Environmentalism",
http://www.grist.org/news/maindish/2005/01/13/doe-reprint/
5. Mattias Akselsson (2004), "World’s leader in wind power", in: Scandinavica.com
magazine
6. Statistics Canada, Environment Accounts and Statistics Division, #16F0008XIE
7. David R. Boyd (2001), "Canada Vs. The OECD: An Environmental Comparison",
http://www.environmentalindicators.com/htdocs/PDF/CanadavsOECD.pdf
8. Christopher J Murphy (2002), "The Profitable Correlation Between Environmental and
Financial Performance: A Review of the Research",
http://www.lightgreen.com/files/pc.pdf
9. Amory B. Lovins (2005), "More Profit With Less Carbon", in: Scientific American,
09/2005
10. Corporate Research Associates (2005), "Special Report on the Environment", in: Spring
Quarterly, 05/2005
11. Northeast States for Coordinated Air Use Management (1999), Emission Performance
Standards, Model Rule Background Information Document
http://www.nescaum.org/pdf/BIDFINAL.pdf.
12. Robert Prescott-Allan (2001), The Wellbeing of Nations: A Country-by-Country Index of
Quality of Life and Environment, Washington D.C. Island Press
13. Michael E. Porter and Claas van der Linde (1995), "Green and Competitive" in: Harvard
Business Review, 09/1995
14. Federation of Canadian Municipalities (2004), "Quality of Life Reporting System", 2004,
http://www.fcm.ca/english/qol/qol.html
15. GPI Atlantic (2001), "The NovaScotia Ecological Footprint",
http://www.gpiatlantic.org/pdf/ecofoot/ns-ecofoot.pdf
16. Mathis Wackernagel et al. (1997), Ranking the Ecological Impact of Nations – How Much
Nature Do They Use? -- How Much Nature Do They Have?,
http://www.ecouncil.ac.cr/rio/focus/report/english/footprint/ranking.htm
17. US Department of Energy (2005), Cost of Coal, Natural Gas and Crude Oil in 1982-2005
– in Constant US $
18. Energy Information Administration (2005), Monthly Energy Review (July).
19. J. David Hughes (2004), "Energy Supply/Demand Forecasts: Implications for a sustainable
energy future in Canada and the world", Geological Survey of Canada
20. Ibid.
21. Ibid.
22. Emera (2004), positive energy – Annual Report 2003, 21.
23. Ibid.
24. GPI Atlantic (2005), "Monetary values expressed in Canadian constant 2000 dollars. Full
Cost of Energy in Nova Scotia",
http://www.gpiatlantic.org/conference/papers/parmenter.pdf
25. Leah Janzen (2003), "Cheap heat from below 13,000-home suburb may go all
geothermal", http://www.climatechangeconnection.org/pages/news/wfp03_nov10.html
26. The Springhill Community Network (2005), Geothermal Energy,
http://town.springhill.ns.ca/Geothermal/geotherm1.htm
27. Marbek Resource Consultants (2005), "Case Study on Renewable Grid-Power Electricity –
Baseline Study and Economic Report", 14.
28. Ibid
29. Michael Parfit (2005), "Powering the Future", in National Geographic Magazine.
30. Nova Scotia Power Inc (2005)., "Tantramar Marsh Site of Next Canadian Wind Farm"
http://www.nspower.ca/AboutUs/WhatsNew/detail4808.html
31. Marbek Resource Consultants (2005), "Case Study on Renewable Grid-Power Electricity –
Baseline Study and Economic Report", 14.
32. International Energy Agency (2003), "Renewables for Power Generation: Status and
Prospects", http://www.iea.org/textbase/nppdf/free/2000/renewpower_2003.pdf
33. Nova Scotia Department of Energy (2005), "New Form of Tidal Power to be Studied",
http://www.gov.ns.ca/news/details.asp?id=20050830005
34. Statistics Canada, Provincial Economic Accounts 2004, catalogue number: 13-213-xdb
35. Ecology Action Centre (2003), "Hook and Line vs. Dragging: The Economic,
Environmental, and Social Costs and Benefits".
36. Forest Products Association of Canada (2003), “Forest Sector Renewal”, 2003
http://www.innovation.gc.ca/gol/innovation/site.nsf/en/in02323.html
20
37. Department of Natural Resources (2005), "The State of Canada’s Forests 2004-05", 24
http://www.nrcan-rncan.gc.ca/cfs-scf/national/what-quoi/sof/sof05/pdf/State-of-
Forests_E.pdf
38. GPI Atlantic (2001), “The Forest Accounts”,
http://www.gpiatlantic.org/pdf/forest/forest1.pdf
39. Ibid.
40. Environment Canada (2005), “British Columbia – FoodMiles and Climate Change Project”,
http://www.ec.gc.ca/ecoaction/success_display_stories_e.cfm?story_ID=12030152
41. Stephen Bentley and Ravenna Barker (2005), "Fight Global Warming at the Farmer’s
Market – The Role of Local Food Systems In Reducing Greenhouse Gas Emissions",
http://www.foodshare.net/resource/files/ACF230.pdf
42. Ibid.
43. Nova Scotia Agricultural College (2005), "Apple Industry to Benefit from NSAC
Research", HTTP://www.nsac.ca/news/2005/apple.asp
44. Amory B. Lovins (2005), “More Profit with less Carbon – Focusing on Energy Efficiency
will do more than protect Earth’s climate, it will make businesses and consumers richer”,
in: Scientific American, 09/2005, 74.
45. Jim Abraham (2005), "A Competitivness and Environmental Sustainability Framework –
Transforming the Way we do Business",
http://www.epa.gov/glnpo/bns/reports/stakemay2005/abraham.pdf
46. Michael E. Porter and Claas van der Linde (1995), "Green and Competitive" in: Harvard
Business Review, 09/1995
47. International Trade Centre (2003), Overview on world trade in organic food products –
the US market and recent trends,
http://www.intracen.org/mds/sectors/organic/biofach.htm
48. J.D. Power (2005), "Hybrid Vehicle Market Share Expected to Peak at 3 Percent",
http://www.jdpa.com/news/releases/pressrelease.asp?ID=2005013
49. Corporate Research Associates (2005), "Special Report on the Environment", in: Spring
Quarterly, 05/2005.
50. The Chronicle Herald, August 19, 2005
51. Ibid.
52. Brian Deal (2004), The Next Industrial Revolution: William McDonough, Michael
Braungart and the Birth of the Sustainable Economy (DVD)
53. Canadian Green Building Council, (2005) http://www.cagbc.org/index.php
54. JD Irving (2005), "Limited Files Environmental Impact Assessment (EIA) Registrations for
Proposed Biomass Energy Plant and Gypsum Wallboard Plant at Former Shipyard Site",
http://www.jdirving.com/Index.asp?Site_Id=1&Page_Id=916
55. Ibid.
56. Canadian Green Building Council (2005), http://www.cagbc.org/index.php
57. Federal Ministry for the Environment of Germany (2005), "Environmental Policy –
Renewable Energy Sources in Figures, national and international Development", 9
58. GPI Atlantic (2004), The Nova Scotia GPI Solid Waste-Resource Accounts,
http://www.gpiatlantic.org/publications/environmental.shtml#solidwaste
59. Nova Scotia Department of Energy (2003), "Electricity Marketplace Governance
Committee – Final Report", 62.
http://www.gov.ns.ca/energy/AbsPage.aspx?id=1226&siteid=1&lang=1
60. Ibid.
61. Federal Ministry for the Environment of Germany (2005), "Environmental Policy –
Renewable Energy Sources in Figures, national and international Development", 41.
62. Michael E. Porter and Claas van der Linde (1995), "Green and Competitive" in: Harvard
Business Review, 09/1995
63. Ibid.
64. Environment Canada (2005), "Get involved, everybody has a part to play",
http://www.greeninggovernment.gc.ca/default.asp?lang=En&nav=9ED538FF-
1#commitment
65. Scott Brison (2005), Speaking Notes for The Honourable Scott Brison, P.C., M.P. Minister
of Public Works and Government Services to the National Press
http://www.pwgsc.gc.ca/comm/min/text/speeches/2005-06-06-00-e.html
66. Teri-Lyn Chetwynd et al (2005), "The HRM Biodiesel Project",
http://economics.dal.ca/mde/Annex2.ppt#3
67. Canada’s Greehouse Gas Inventory,
http://www.ec.gc.ca/pdb/ghg/ghg_tables_2001_e.cfm
68. Environment Canada (2004), “The One Tonne Challenge – Tracking Survey Fall 2004
(Phase 1)”, 10/2004
All websites were last viewed October 11, 2005.
 ACKNOWLEDGEMENTS
Many individuals and organizations contributed to this Report Card,
and the report represents the consensus reached among them. The Editorial PRESENTING SPONSOR
Committee, consisting mostly of volunteers, did the largest share of the work.

EDITORIAL COMMITTEE
Gillian Wood Dalhousie University (Chair)
Dean Bouchard Halifax Port Authority (Chair Environmental
Sustainability Subcommittee)
Michael Gardner Gardner Pinfold Consulting Economists
Ltd. (Chair Fundamentals Subcommittee)
Steve Machat Clean Nova Scotia
(Chair Climate Change Subcommittee)
Len Preeper Thinkwell Research GOLD SPONSORS
(Chair Awareness Subcommittee)
Jonah Bernstein Nova Scotia Department of Energy
Deborah Carver Nova Scotia College of Arts and Design
Kay Crinean NovaKnowledge
Jim Fletcher Jacques Whitford
Michael Hingston Environment Canada
Eric Hundert Environment Canada
Rick Joseph Nova Scotia Environmental Industry
Association
Stephen King Halifax Regional Municipality
Tony Lamport Nova Scotia Office of Economic
Development
Marc Lewis Impact Communications Group
SILVER SPONSORS
Ben McBeth Nova Scotia Department of Finance

Scotiabank Group is proud to support the Ron McLeod

Cathie O’Toole
Telecom Application Research Alliance
Halifax Regional Municipality
John Odenthal Halifax Global
Dick Smith † Canadian Manufacturers and Exporters
Kevin Smith Teknion Furniture Systems
Meddy Stanton Nova Scotia Office of Economic
Development
Darin Steeves Nova Scotia Business Inc.
Katja Stoessel NovaKnowledge
Anne Thomson Industry Canada
Julie Towers Nova Scotia Environment and Labour
R E P O R T C A R D Brian Watson Nova Scotia Office of Economic
Development
Sirje Weldon Canadian Manufacturers and Exporters

ORGANIZATIONS THAT FREELY PROVIDED

DATA AND ADVICE:
Canadian Federation of Independent Business
Dillon Consulting GOVERNMENT FUNDING PARTNERS
Eco-Efficiency Centre
Ecology Action Centre
Environmental Defense
Green Power Labs
Nova Scotia Office of Atlantic Canada
novascotialife.com Economic Development Opportunities Agency
Nova Scotia Power Inc.
Nova Scotia Department
Environment Canada
of Energy
PAID PROFESSIONALS Nova Scotia Department Industry Canada
Eleanor Beaton (writer) of Environment and Labour
Patrick Brannon (data analyst)
 2005
KNOWLEDGE ECONOMY REPORT CARD
2006

THE FOLLOWING MEMBER ORGANIZATIONS SUPPORT NOVAKNOWLEDGE:

KNOWLEDGE LEADERS
Acadia University • Aliant • Atlantic Canada Opportunities Agency • BMO Bank of Montreal • Canada Revenue Agency
• Capital District Health Authority • Clearwater Fine Foods Inc. • Dalhousie University • DownEast Communications
• Grant Thornton LLP • Greater Halifax Partnership • GrowthWorks Atlantic Ltd. • Halifax Metro Centre
THE ENVIRONMENTAL ECONOMY
• Halifax Regional School Board • Human Resources and Skills Development Canada • IBM Canada Ltd. • Industry Canada • InNOVAcorp SEIZING OPPORTUNITIES
• Insurance Bureau of Canada • Keane Canada Inc. • League Data • McInnes Cooper • MedMira Inc.
• Michelin North America (Canada) Inc. • Mount Saint Vincent University • MT&L Public Affairs Ltd. • Nortel • Nova Scotia Business Inc.
• Nova Scotia Community College • Nova Scotia Department of Education • Nova Scotia Environment & Labour
• Nova Scotia Department of Intergovernmental Affairs • Precision BioLogic Inc. • Saint Mary‘s University • Scotiabank
• Sierra Systems Group Inc. • The Barrington Consulting Group Inc. • Trade Centre Limited
• Workers‘ Compensation Board of Nova Scotia • xwave, an Aliant Company

ASSOCIATES
Acadian Seaplants Limited • Accelerator Inc • Atlantic Provinces Economic Council • BioNova
• College of Registered Nurses of Nova Scotia • DDA Solutions • Ergoworks Atlantic • Genome Atlantic • Halifax Chamber of Commerce
• Impact Communications Group • KPMG • Maritime Travel • Nova Scotia College of Art & Design • Nova Scotia Provincial Library
• Nova Scotia Teachers‘ Union • Pictou Regional Development Commission • Scribendum • The Globe and Mail
• Theriault Financial Inc. • Tourism Industry Association of N.S. • WBLI Chartered Accountants

Presenting Sponsor:

Gold Sponsors: Government Sponsors:

To find out more about innovation in the province of Nova Scotia visit novascotialife.com www.novaknowledge.ns.ca