What makes a place unique, and how its people innovate to transform that uniqueness into economic and quality of life opportunities, really comes to light in my discussion with Michelle Simms, CEO of Advantage St. John’s.
The province today is positioned as a strategic centre for innovation, technology, the arts, and sustainable industries. It wasn’t always this way. Michelle walked me through how St. John’s and the province, Newfoundland and Labrador, built a “small but mighty” and incredibly resilient North Atlantic economic powerhouse.
It makes for a very good watch, beginning with this first 5-minute introduction.
Well-earned reputation for resilience
Canadians are familiar with aspects of Newfoundland and Labrador’s economic history, including the catastrophic collapse of the Northern cod fishery in 1992. What we and others are less knowledgeable about is the immense effort, adaptation, and economic diversification that has taken place in the province, resulting in over a billion dollars in venture capital invested into its technology sector.
Newfoundland and Labrador, and its capital region of St.John’s, Conception Bay South, and Paradise, is a case study in how a potent mix of willpower, culture, industry and geography can transform the economic trajectory and fortunes of an entire area.
From the Video. LINK Analysis: St. John’s, Newfoundland and Labrador
Advantage St. John’s aligns multiple stakeholders toward common goals. It intensifies collaboration among government and other key actors, which is a core feature of a globally competitive innovation ecosystem. It enables the collective pursuit of new opportunities, attracting greater influxes of Foreign Direct Investment (FDI)
→ FDI: capital + new technologies and practices that enrich the local ecosystem. (See Harvard’s Atlas of Economic Complexity)
Knowledge Spillovers & Unique Capabilities: The oil and gas industry catalyzed innovation through knowledge creation and transfer. The need for creative solutions in harsh environments led to knowledge spillovers—transferring expertise to other sectors. This is a core principle of ecosystem synergies, where success in one area fuels growth in another. These specialized skills create a unique, persistent competitive advantage for St. John’s and Newfoundland and Labrador.
The influx of a billion-plus in external capital shows that St. John’s--and Newfoundland and Labrador--offer a unique value proposition where investments in local innovation promise good returns at reasonable risk. This signals that the ecosystem has successfully used its existing strengths to enter or create new, complex markets. These FDI investments are an outcome of increasing levels of specialized knowledge, skills and resources: the innovation ecosystem stands out for its highly skilled talent and their high degree of specialized know-how.
Collaborative Ecosystem Fuels Diversification: The evolution from oil and gas to aerospace, defence, and ocean/marine is a prime example of strategic diversification and increasing economic complexity. A resilient economy is not just diverse, it is complex, with specialized skills and knowledge. The growth of a talent pipeline through post-secondary institutions is a critical component. By expanding their programming, they foster innovation through research, training, and partnerships with industry. This collaboration strengthens the ecosystem, reducing vulnerability to economic shocks.
Building Trust to Spur Progress: Strong relationships and mutual support point to a high degree of trust among stakeholders.Trust is a vital but often intangible component of a successful innovation ecosystem. By having a strong and unified support system, the region can more confidently pursue new ventures and strategic bets, knowing that all actors are aligned and working together to overcome challenges and drive long-term progress.
Leveraging Unique Cultural Assets: The region’s welcoming culture, resilience, and unique character are not just anecdotes—they are strategic assets. Local uniqueness lays the foundation for an authentic innovation ecosystem. By leveraging cultural and historical advantages, a region can create a competitive edge. The distinct identity of St. John’s--indeed all of Newfoundland and Labrador--attracts talent who resonate with its ethos and lifestyle, fostering a deep sense of belonging.
What is LINK Analysis?
LINK analysis is based on a framework I put together based upon dozens of interviews with leaders from innovation ecosystems in Canada, the United States and several international locations. To the source material I added well-regarded research into local innovation ecosystems and economic development. The interviews and research are all underpinned by economic complexity thinking. The net result is LINK and a virtuous innovation cycle available to all regions, regardless of their current state of progress or emphasis on innovation ecosystems.
