Showing posts with label business incubators. Show all posts
Showing posts with label business incubators. Show all posts

Monday, August 03, 2020

Navdeep Bains & Others Flinging About Buckets of Money: The August 3rd, 2020 Age of Ingenuity

Everyone loves Navdeep Bains, Canada’s innovation minister, especially the innovation community which hungers for those countless semi-trailers full of cash he’s been giving out recently. 

We're going to look at that and we're also going to remember the time when we could ask government ministers hard questions and have a reasonable expectation of receiving an honest answer even for the difficult issues.


Sources cited during this episode include the following:
  • The May 7th, 2017 Macleans post, "Q&A: Navdeep Bains on Selling 'Superclusters'." Photo c/o Adrian Wyld/CP. 
  • The April 22nd, 2020 update to the National Research Council (NRC) Industrial Research Assistance Program (IRAP) Innovation Assistance Program (IAP). Uploaded on August 3rd.
  • The 2019 Canadian Venture Capital Report from the Financing.ca website. Retrieved July 31st, 2020.

"Age of Ingenuity" tracks Canada's "innovation ecosystem," the organizations, agencies and individuals attempting to turn innovative Canadian start-ups into world class, billion dollar "unicorns," able to anchor industries and create jobs.


Age of Ingenuity Credits


Producer and Host - Chuck Black
Host and Contributor - Brian Orlotti
Host and Contributor - Al Calder
Associate Producer and Contributor - John Penturn

Music: Freesound House Flow by Jaturo and Scream by DigitalDominic. Both licenced under a Creative Commons 0 Licence.

The Age of Ingenuity is created using ZOOM, Open Shot Video Editor, Gimp, various laptops and cell phones, plus lots and lots of coffee.

Follow us on YouTube and Bitchute. Check out our social media on Facebook, Gab, LinkedIn, Minds, Pinterest, Steemit and Twitter. Follow the stories we're tracking on the Canadian Innovation News and Upcoming Events Scoop-It feeds.

Copyright disclaimer under section 107 of the US Copyright Act of 1976, allowing for “fair use” for purposes such as criticism and under section 29 of the 1921 Canadian Copyright Act allowing for “fair dealing” exemptions for criticism, review and news reporting.

Remember to like, comment, share, subscribe and support this vidcast on Patreon and Paypal. 

Monday, February 25, 2019

Will Australia Become the Third Nation to Encourage Private Sector Space Mining?

          By Chuck Black

Both the United States, with its "Commercial Space Launch Competitiveness Act of 2015," and the Grand Duchy of Luxemboug are well known for recent legislation allowing their citizens and domestically based corporations to claim ownership over space based resources.

Mars (on the left) has more than a little in common with the Australian outback (on the right) according to the December 4th, 2014 ABC News Australia post, "Mars V Australian Outback." As outlined in the June 10th, 2018 VentureBeat post, "The best countries for tech companies: 2018 rankings," the Economist Intelligence Unit (EIU) has named Australia, Singapore and Sweden as "the countries most prepared for technological change, and the most attractive places for tech companies to invest in the next five years." It's a shame that Canada wasn't in the top ten rankings. Photo's c/o NASA and Jane Stapleton.

Those laws are designed specifically to encourage private sector extraterrestrial exploration and resource extraction. Now it looks like a third nation could soon be following along the same path.

As outlined in the February 14th, 2019 the Conversation post, "Australia: well placed to join the Moon mining race … or is it?," there has certainly been a lot of discussion on the topic since the establishment of the Australian Space Agency on July 1st, 2018.

Australia's Space Roadmap. Cover c/o CSIRO.
The article noted that one of the priorities of the new space agency is "developing a strategy to position Australia as an international leader in specialized space capabilities" such as space mining.

It also pointed out that terrestrial mining operations often use autonomous drills, robotic tools optimized for extreme environments and other high-tech tools which could be useful for mining operations on Mars or the asteroids.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO), the independent Australian federal government agency responsible for scientific research, has noted space resource utilization as a key element of its 2018 Space Road Map, more formally known as "Space: A Roadmap for unlocking future growth opportunities for Australia."

As outlined in the Space Road Map:
Australian industry has a unique opportunity to leverage the nation's strengths and advantages to increase its role in the international space sector by providing strategic contributions to global value chains that result in economic return and improve the lives of Australians. 
These include:
  • Growing the ecosystem and downstream utilisation of space-derived data and services, such as Earth Observation, positioning navigation and timing, and satellite communications.
  • Building an Australian industry to track space objects to ensure the continued availability of space assets.
  • Leveraging Australia's research and industrial strengths to develop cutting edge technology for global space exploration and utilization.

The Wilde Project is named after Oscar Wilde (it's a long story), and includes Australian researchers from multiple schools and faculties organized through the Australian Centre for Space Engineering Research (ACSER) at the University of New South Wales (UNSW) in Sydney. It plans to design a space mission to "process water from the permanently shadowed craters at moon’s poles" to demonstrate the feasibility of a variety of tools and methodologies to the mining community since "both the (Australian) space agency and CSIRO now have it as a priority." Screen shot c/o UNSW Engineering.

But while Australia has (so far at least) not moved forward with the necessary legal regulations needed for citizens and domestically based corporations to claim ownership over space based resources, the national news outlets have starting to notice the local mining expertise and how that skill-set is applicable to the space industry.

According to the February 22nd, 2016 Huffington Post Australia article, "Australia Will Lead The Way In Space Mining Because We're Used To Operating In Isolated, Extreme Environments."

As outlined in the December 4th, 2017 WA Today post, "Gold, water and platinum: Australians lead the way towards asteroid mining boom," Australia "will have asteroid mining before we have people living on Mars," because "there is money involved."

It's odd that no one in Canada has figured this out.

Mining in Australia, much like mining in Canada, is a significant primary industry and contributor to the domestic economy.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog. 

Thursday, February 07, 2019

Honeywell Will Formally Open Its Already Operational Smallsat Tech Incubator in Old COM DEV Facility

          By Henry Stewart

Maybe things are starting to look up for Canada's space industry.

Sometime this month, Charlottesville NC based Honeywell International, will formally open its Space Division’s Greenhouse, a technology and space focused incubator in a facility originally owned by the old Cambridge ON based COM DEV International.


Of course, the Honeywell Greenhouse has unofficially been opened for almost a year. It's been publically referenced as far back as the August 22nd, 2018 Space News post, "Small satellites are at the center of a space industry transformation" and many of its core staff have held their formal titles since June 2018.

Before then, most worked for COM DEV and focused on doing pretty much what they had been doing since Honeywell brought the iconic Canadian space company and spun out its Cambridge ON based exactEarth smallsat subsidiary as a separate company in late 2015.

But a formal announcement, as outlined in the January 7th, 2019 Space News post, "Honeywell to open technology incubator," has just got to come as good news, even if only as an implied commitment that the facility will remain open in some capacity.

According to Space News:
The market for geostationary communications satellites has slowed at a time when companies around the world are beginning to build small satellite constellations. 
Increasingly, customers demand reliable satellite components they can acquire quickly and inexpensively. To meet that demand, Honeywell is “picking technologies it is really good at making and bringing them into this new age,” Mississian said. 
Honeywell has 25 full-time employees working in the Greenhouse established in the Ontario, Canada, facility that was home to COM DEV International before Honeywell acquired the satellite component builder in 2015. The Greenhouse also pulls in expertise from the larger company.
The Greenhouse will work on a variety of projects relating to optical intersatellite links, reaction wheels, optical imagers and technology developed initially by COM DEV for Canadian government contracts.

As outlined in the September 1st, 2017 SpaceQ post, "Cambridge Facility Sees Workforce Reduction of 49% Since Honeywell Acquired Com Dev International," up to 49% of the facilities estimated 550 employees were either laid-off, retired of left the company within two years of it being acquired by Honeywell.
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Henry Stewart is the pseudonym of a Toronto based aerospace writer.

Tuesday, January 01, 2019

2018: The Year in Space for Canada

          By Chuck Black

Last January, no one would ever have thought that the big Canadian space story of 2018 would be the slow destruction of Westminster CO based Maxar Technologies' market valuation on the New York Stock Exchange (NYSE) and its effect on Canada.

Maxar stock peaked with a January 4th, 2018 high of $65.25 US ($88.97 CDN) per share, then bottomed out with a December 24th, 2018 low of $9.55 US ($13.02) per share.

But while Maxar crashed and burned, a whole new generation of private sector, mostly Canadian owned and operated space focused firms quietly perfected their technology, slowly raised funds for expansion and painstakingly developed functional business plans.

Here's an overview of some of the important stories this blog has covered over the last year.

It's alliance with Dorval PQ based Bombardier Aerospace to turn Bombardier’s single-aisle C Series (now known as the Airbus A220) into a commercial success moved Ottobrunn Germany based Airbus Space and Defence into the front ranks of Canadian aerospace contractors and either saved or destroyed the Canadian aerospace industry, depending on who you're talking with. As outlined in the January 29th, 2018 post, "A Pyrrhic Victory for Bombardier," the year began with the successful dismissal of US trade sanctions. It ended with Bombardier selling off several business units and significant employee layoffs. As outlined in the December 20th, 2018 post, "Airbus Has Been in Canada for Thirty-Five Years and Wants to Increase its Contribution to Our Space Activities," Airbus finished out the year intending to utilize the good feelings flowing from the Canadian government because of the Bombardier partnership to grow its Canadian footprint. Graphic c/o Wendover Productions.

Maxar's strong start to the year was based on the perception (or presumption) that the Justin Trudeau Liberal government would follow through on the Federal Space Advisory Board (SAB) August 2017 preliminary report "Consultations on Canada’s future in space: What we heard," with enough new funding in the 2018 Federal Budget to finish the SAB report and light the way forward.

That final report, once written, was also expected to recommend at least one large new project with enough funding to keep Maxar happy, plus enough extra money to spread around to the rest of the space community to create the perception of a "balanced space program."

Three large projects were considered:
  • Additional RADARSAT's for the RCM (up to three more satellites on top of the currently planned three).
However, and as outlined in the March 8th, 2018 post, "Space Advisory Board Chair Admits Disappointment over Budget but Promises to Continue to Support Space Sector," the new funding didn't materialize, and the SAB slowly slid into irrelevance.

By the October 15th, 2018 post, "The Federal Space Advisory Board (SAB) Insists that It's Working Hard," there wasn't really anything for the SAB members to do, except attend conferences and reminisce about what could be accomplished with additional government funding.

It certainly didn't help much that, as outlined in the the February 27th, 2018 Toronto Star post, "Budget boosts science research, grant funding," the 2018 Federal budget substantially increased direct government funding for fundamental research, an area of interest which mollified many of the CSA's traditional academic partners.

Maxar also had a tough year on the Toronto Stock Exchange (TSE), dropping from its January 3rd, 2018 high of $82.01 CDN to bottom out at $13.04 CDN on December 24th, 2018 before recovering slightly in time for the year end. As outlined in the October 05, 2017 post, "MDA Acquisition of DigitalGlobe Closes; New US Based Combined Company now called Maxar Technologies," Richmond BC based MacDonald Dettwiler (a Canadian based company with a lengthy history of prime contracting for major space focused Canadian Space Agency (CSA), military and government programs) reincorporated in 2017 as US based Maxar in order to obtain access to the lucrative US satellite and military market. But the bottom fell out of the US geosynchronous (GEO) satellite market and, while the new Maxar did begin picking up US military, NASA and Defense Advanced Research Projects Agency (DARPA) contracts, Canada waffled over the political implications of providing new contracts for iconic Canadian technology to a US based firm. As outlined in the December 31st, 2018 CNW press release, "S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices," the shareholders of Maxar eventually completed a planned US "domestication" and "approved a change of domicile for the company from Canada to the United States." Maxar stock "will be removed from all S&P/TSX indices where the stock is a constituent prior to the open of trading on Monday, January 7th, 2019." Graphic c/o TSE: MAXR.

The 2018 Federal Budget also allocated $100Mln Cdn for low Earth orbit (LEO) broadband initiatives, although most of that was expected to end up with Ottawa ON based Telesat, which made the original project proposal as part of its "2018 Federal Pre-Budget Submission" to the 2018 Pre-Budget Consultations in Advance of the 2018 Budget in the fall of 2017.

By April, and as outlined in the April 20th, 2018 post, "Telesat Moves Forward with New Offices, New Plans, New Challenges and New Funding," Telesat was accessing financing supplied through a $100Mln CDN pot allocated through the Federal Strategic Innovation Fund in the 2018 Federal budget and a $20Mln CDN direct contribution from the government of Ontario. Several billion more will be needed to complete the program but the existing funding was a good start.

The assistance of the US Defense Advanced Research Projects Agency (DARPA) will also help. As outline in the November 27th, 2018 Telesat press release, "DARPA Selects Telesat’s LEO System to Support DARPA’s Blackjack Program," DARPA is exploring the use of Telesat's LEO system for DoD’s future space-based communications requirements.

Maxar CEO Howard Lance in July 2018. Photo c/o @MaxarTech.
Another potential source of government funding, the $950Mln Federal government “superclusters” initiative, didn't break in Maxar's favor either.

As outlined in the February 16th, 2018 post, "Ottawa Announces Winners of $950Mln 'Supercluster' Competition," a proposal to build a smart agri-food supercluster (which included Maxar participation) didn't make the final cut. 

A second proposal from the Ottawa ON based Satellite Canada Innovation Network (SATCAN), originally discussed in the August 3rd, 2017 post, "Satellite Canada Applies for Innovation SuperCluster Funds," wasn't funded either.

But other space focused hi-tech firms and their proposals fared better. Groups which included PQ based ABB Canada, Kitchener ON based Clearpath Robotics, Ottawa ON based C-CORE, Burnaby BC based D-Wave Systems, Cambridge ON based exactEarth and Vancouver BC based Urthecast all received supercluster funding. 

Maxar, which wasn't included in any of the successful applications, didn't immediately panic.

As late as the March 7th, 2018 Space News post, "SpaceX, Trudeau Will Help Lift Satellite Maker Maxar Out of Its Slide, CEO Says," Maxar CEO Howard Lance was still prepared to tell anyone willing to listen that, while the bottom had fallen out of the US geosynchronous (GEO) satellite market (a major source of revenue for Palo Alto CA based Maxar subsidiary SSL, which focused on the manufacture of expensive, high-profit communications satellites) and Canadian deals weren't moving forward, the situation was only temporary.

The markets would improve and, as noted explicitly in the article, Lance expected Canadian Prime Minister Justin Trudeau to come to Maxar's rescue with a new, government funded space project tailored to Maxar strengths before the end of the year.

It was a quiet year. As outlined in the December 28th, 2018 CSA post, "Highlights of 2018," the Canadian Space Agency listed twelve highlights for the year. They included the January 20th, 2018 addition of a new hand for the Canadarm, the tenth anniversary of the Special Purpose Dexterous Manipulator (SPDM) or DEXTRE on the International Space Station (ISS), the May 5th, 2018 announcement of the participants in the Canadian CubeSat Project, the fifteenth anniversary of SCISAT,  the arrival of the OSIRIS-Rex spacecraft (with Canada’s critical laser altimeter) at asteroid Bennu and the December 3rd, 2018 departure of Canadian astronaut David Saint-Jacques for the ISS. Graphic c/o CSA.

But by August, and as outlined in the August 10th, 2018 post, "Maxar Technologies Might be Getting Paranoid," Trudeau still hadn't offered up any space funding. Some, including New York NY based Spruce Point Capital Management, were even beginning to question the fundamental assumptions which had until now supported the Maxar stock price.

Maxar needed to develop a more proactive approach.

With the assistance of the Ottawa ON based Aerospace Industries Association of Canada (AIAC) and, as outlined in the September 13th, 2018 post, "Dead Cat Bounce! New Canadian Space "Coalition" Wants Much the Same as Last Time, But With Money," Maxar created an entirely new, ostensibly independent, Federal government lobby group tasked with helping to secure Canada's "place in space."

Over the next several weeks, the underlying structure of the lobby group, known as the Don't Let Go Canada coalition was uncovered in several articles, most notably the September 18th, 2018 post, "Colorado Based Maxar/MDA Asking for $1-2Bln to Build Another Canadarm for the US LOP-G."

Bains with Bridenstine on November 14th. Photo c/o Alex Tétreault.
The coalition was organized by Maxar through its Ontario based MDA subsidiary and focused primarily on encouraging the Canadian government to fund a multi-billion dollar "3rd generation Canadarm" for the proposed US LOP-G.
According to several high-level sources within the Canadian space industry, certain NASA employees (including Bill Gerstenmaier, the NASA administrator for human exploration and operations) are working with senior members of the Canadian Space Agency (CSA), the Aerospace Industry Association of Canada (AIAC) space committee and Maxar/MDA to co-ordinate a campaign to encourage the Federal government to announce funding for Canada's contribution to the LOP-G program as early as this fall, if possible.
The article also noted that much of the planning for the campaign (and many of the organizational e-mails) originated from MDA director of public affairs Leslie Swartman. MDA, as the holder of many of the original Canadarm patents, would be first in line for any new Canadarm derived work and could reasonably be expected to make a substantial profit off the program.

The coalition campaign culminated in an unusual November 2018 public request from NASA Administrator Jim Bridenstine for Canada to sign-on to the LOP-G program during a stage presentation at the 2018 Canadian Aerospace Summit, which was held in Ottawa ON on November 13th - 14th, 2018.

As outlined in the November 15th, 2018 post, "Innovation Minister Navdeep Bains Politely Pushes NASA Administrator Jim Bridenstine Under the Bus," Federal Innovation Minister Navdeep Bains provided a very public "no" to the NASA Administrator on the same stage, later the same day.


By now, there wasn't a lot of fight left in Maxar.

As outlined in the November 1st, 2018 post, "Maxar Technologies Share Price Collapses After Q3 Earnings Report Released," its stock price had collapsed two weeks earlier due to revenue shortfalls caused by the very same ongoing GEOsat market collapse noted back in March.

In response to the stock collapse and as outlined in the December 6th, 2018 Space News post, "Maxar sells portion of SSL real estate," Maxar began selling off its real estate holdings in an effort to raise money.

It also raised "the maximum consolidated debt leverage ratio," just in case the property sales couldn't generate enough cash to pay down the Maxar debt left over from its initial acquisition of SSL and Westminster CO based DigitalGlobe, the 2017 acquisition which began the process which turned Burnaby BC based MacDonald Dettwiler into Colorado based Maxar.

Worst of all, and as outlined in the December 12th, 2018 Nasdaq post, "Maxar Technologies Ltd. (MAXR) Ex-Dividend Date Scheduled for December 13, 2018," was the cancellation of Maxar's quarterly dividend.  Reducing or cancelling the amount of dividend paid to shareholders normally makes them unhappy and sends the message that the company is not doing well financially.

As outlined in the December 21st, 2018 Street Insider post, "Maxar Technologies (MAXR) continues to explore range of strategic alternatives for its GEO communications satellite line," the company "also continues to be actively engaged with its customers to procure additional GEO satellite orders."

Even with that, it's expected that Maxar will eventually be forced to divest itself of major portions (if not all) of its SSL large satellite manufacturing business. Maxar has promised to announce a decision regarding the strategic direction of its GEO business in the new year.

At least one Canadian expatriate could claim to have had a good year. Cape Canaveral FL based Moon Express (ME) founder and CEO Robert D. Richards (shown here with CSA president Sylvain Laporte) returned to Canada to open a ME branch office and "explore options for collaboration with the CSA and Canada’s space sector on technologies and payloads for missions to the Moon." As outlined in the November 30th, 2018 post, "Procurement Contracts, Not Science or Engineering, Will Define the Next Generation of Robotics and Planetary Rovers," ME is one of nine "US based companies (which) are now eligible to bid on NASA delivery services to the lunar surface through a new Commercial Lunar Payload Services (CLPS) program, a series of fixed price procurement contracts NASA will begin issuing in 2019 which are intended to facilitate the planned US return to the Moon." The program also has more than a passing resemblance to the very successful Commercial Orbital Transportation Services (COTS) fixed priced NASA program, which helped to turn Hawthorne CA based SpaceX into a titan of the NewSpace industry. Photo c/o ME.

Other Canadian companies have also had an adventurous year. They include:
  • The thirty seven organizations participating in the Canadian Cubesat Project which, as discussed in the May 7th, 2018 post, "Canadian Cubesat Project Finally Moving Forward," received Federal funding through fifteen grants of between $200,000 - $250,000 to post-secondary based teams attempting to build functioning cubesats for launch beginning in 2020.
  • Montreal PQ based Northstar Earth and Space which, as outlined in the November 16th, 2018 post, "A $52Mln CDN Financing Deal for Northstar Earth and Space Inc.," received funding for the development of "a global environment information platform which will transform humanity's ability to manage our impact on Earth and its natural resources," only one day after Innovation Minister Bains rejected the NASA Administrator Bridenstine's offer to announce participation (and funding) for a Canadian contribution to the US LOP-G.

In 2018, other Federal government departments and private sector organizations explored the use of space based assets to solve Earth based problems. The June 8th, 2018 post, "NRCan Explores Space Mining," covered the Natural Resources Canada (NRCan) initiative for input on space mining as part of its process to develop a new Canadian Minerals and Metals Plan (CMMP). The October 25th, 2018 post, "A White Paper on the "Case for a Global Telemedicine Vehicle Network," noted Ottawa ON based C-COM Satellite Systems concern over a global lack of local health care resources and addressed the challenge using modern telemedicine and telecommunications technologies. By the end of the year, and as outlined in the December 6th, 2018 post, "Space Mining and Innovation Should Be Encouraged Through the Tax Code, According to NRCan and CATA Alliance," both NRCan and the Ottawa ON based Canadian Advance Technology Alliance (CATA Alliance) were suggesting that the best way to encourage innovative new space technologies was through the tax code and not via direct government grants. Graphic c/o Planetary Resources.

Some Canadian based firms attempted to overcome challenges related to perception and politics.

As outlined in the April 13th, 2018 post, "Ukrainian Rockets Like the Cyclone 4M Are Too Dangerous an Investment for Western Interests: Kyiv Post," Nova Scotia based Maritime Launch Services (MLS), a joint venture of three US based firms attempting to open a East Coast based launch facility for Ukrainian built Cyclone 4M rocket, spent most of the year scrambling to raise funds and convince the Federal government that they had a plan worth supporting. 

By spring, as outlined in the May 25th, 2018 post, "Maritime Launch Services Will Not Say When It Will Begin Building Proposed Canso NS Commercial Spaceport," the wind had gone out of the sails of the project, even as MLS left the door open for other rockets to launch at the proposed facility. 

To its credit, MLS noted quite correctly in its August 2018 "Submission to the Standing Committee on Finance" for the 2019 Pre-Budget Consultations in Advance of the 2019 Budget that its very difficult to get a launch licence in Canada and the regulations governing this activity should be revised. 

In essence, and without substantially revised legislation, no one will ever be able to launch an orbital rocket from Canadian soil. Here's hoping that changes in 2019.

Inuvik based satellite receivers, built almost three years ago, are unusable today, after the failure of multiple attempts to fulfill Canadian government licencing requirements. Photo c/o Rolf Skatteboe.

Another group with problems over existing Canadian legislation governing space activities was the entire town of Inuvik NWT. 

As outlined in the March 5th, 2018 post, "That Commercial Ground Station Built by New North Networks in Inuvik Still Can't be Used," a local company attempting to fulfill a contract for the European Space Agency (ESA), an international organization which includes the CSA as a "co-operating" member, was unable to do so, even after an almost three year wait, because of Federal government delays in providing the appropriate permits and approvals. 

According to the article:
From a legal standpoint, the existing barriers favor legacy players, such as the Federal government owned Inuvik Satellite Station Facility (ISSF), administered by the Canada Centre for Mapping and Earth Observation and part of Natural Resources Canada (CCMEO/NRCan), which opened in 2010 and is the only other ground station in the region
Eventually, as outlined in the May 31st, 2018 post, "Inuvik Mayor Calls Feds "Not Forthcoming" Regarding Private Sector Commercial Ground Station Application," even Inuvik Mayor Jim McDonald weighed in on the situation.

Over the summer, as outlined in the June 21st, 2018 post, "The Special Senate Committee on the Arctic Holds a Hearing on Northern Infrastructure & That "Unlicensed" Inuvik Groundstation," Senate hearings were held on the issue, but nothing ever came of it.

A year-end announcement by Seattle WA based Amazon may have rendered the whole issue mute.

As outlined in the December 03, 2018 post, "The New Amazon Web Services Ground Station (AWSGS) Will Disrupt Existing Ground Stations," a new "cloud-based product offering scalable computing power for satellite ground stations and data processing," using "Amazon’s current AWS cloud computing infrastructure." is likely only the latest step in rolling out of new, lower cost, satellite services to the public.

So what's going to happen next year in space for Canada? To find out, check out future editions of the Commercial Space blog.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

Thursday, November 01, 2018

The REAL Path Towards Revitalizing the Canadian Space Industry

          By Chuck Black

It's worth noting that a great many academic, non-governmental and business organizations want the Federal government to give them bucketloads of new money for various projects and insist that this will revitalize the Canadian space industry.


They are wrong. Totally and irrevocably wrong. Our current worldwide explosion of private sector space accomplishments has nothing whatsoever to do with simply shoveling new government money into traditionally structured programs.

The problem is the structure of the program, not a lack of funding.

The only real way to revitalize the Canadian space industry and make it competitive in the marketplace of ideas (not just as a component manufacturer) is to change the procurement methodologies of government departments such as the Canadian Space Agency (CSA) and update the Federal tax code to support innovative, Canadian based, private sector corporations.

This is what the US and Luxembourg are currently doing and it is the main reason why companies like Hawthorne, CA based SpaceX,  Las Cruces NM based Virgin Galactic, Betzdorf Luxembourg based SES SA and even Ottawa ON based Telesat are currently investing so heavily in the final frontier.

Oddly enough, back in 2012, the Canadian Space Commerce Association (CSCA) did look at those areas in the first two of its three part series of submissions to the 2012 David Emerson led Aerospace Review.


As outlined in the June 30th, 2012 CSCA submission to the Aerospace Review under the title, "Submission to the Aerospace Review Part 1 of 3 - Fostering Innovation, Creating New Markets: Novel Approaches to Space Policy and Programs," the CSCA recommended that government "explicitly encourage the development of entrepreneurial or “commercial space” industries and approaches," using a variety of policies and programs.

These included:
  • Updated government policies and regulations covering the experimental permitting, safety standards, liability limitation and launch licencing for commercial launch providers in Canada. 
  • The ability to commercially access existing US and Canadian government civilian and military facilities related to the space industry and the encouragement of the creation of appropriate new facilities (such as spaceports and satellite receiving facilities) and build new ones, as required. 
The often discussed "unlicensed" Nunavik ground station, last covered in the June 21st, 2018 post, "The Special Senate Committee on the Arctic Holds a Hearing on Northern Infrastructure & That "Unlicensed" Inuvik Groundstation," would surely have benefited from some of the proactive approaches discussed in this paper. 

Halifax NS based Maritime Launch Services (MLS), although saddled with the obsolete, expendable Cyclone-4M launch vehicle at the core of its plan to build a launch facility on Canada's east coast, would also have benefited from at least knowing the process required to gain government approval to build a spaceport. 

And, as outlined in the May 11th, 2017 post, "CATAAlliance Calls for Adaption of the US Small Business Innovation Research (SBIR) Program," other organizations have also called for the use of novel contracting approaches for Federal procurement.

According to the May 25th, 2017 post, "Attempting Relevance, the Canadian Space Agency Announces Industry Focused & Small Business Funding," the Canadian government has at least begun to take a few small baby steps down this path. 


But it's the second of the three CSCA submissions to the Aerospace Review, "Using Tools from the Mining Industry to Spur Innovation and Grow the Canadian Space Industry," which may hold the most unique lessons for Canada's space industry.

The second submission doesn't suggest adopting new methodologies or co-opting techniques from others.

It suggests only that the techniques and tax breaks already in place to grow our mining industry, can also be used to grow our space industry.

The second submission contained two recommendations:
"Canadian companies engaging in extraterrestrial resource development should be granted all tax and other benefits now granted to them in their terrestrial exploration and development activities."
"The Federal government should create provisions in Canadian law for clear, transferable title to extraterrestrial mining claims and returned resources and work to negotiate international agreements to the same effect"
  • To support this recommendation, the paper referenced the specific terms of the 1967 United Nations Outer Space Treaty, referenced a number of independent authors with expertise in this area and reviewed how the implementation of certain "revenue neutral" changes to Canada's tax code changes led to the massive growth of the Canadian mining industry, beginning in the 1980's. 

As noted above, the changes recommended in the CSCA submissions are "revenue neutral" for the Federal government to implement. Large new buckets of funding are not required to change the tax code or modify procurement contracts.

They're also changes which are being adapted in the US and in smaller jurisdictions, like Luxemburg, with great success.

Once the recommended changes have been made, our domestic space industry will begin to grow in the same way that Canada's mining industry (which grew in response to the tax changes) and private sector companies like SpaceX (which thrived at NASA under the various COTS programs and used its resulting expertise to dominate the launch market) have started to thrive.

It's simply a question of seeding the industry with the proper resources and opportunities needed to make things grow.

Of course, the whole plan is a least modestly dependent on the willpower of our political class. They certainly didn't have the willpower to implement those recommendations six years ago. They may not have the willpower now.

But if they do then maybe one day, even some of those who've left Canada for more favorable regimes will return to put down new roots in their country of origin. They might even relocate their corporate head offices. Mining companies have certainly done that over the last thirty years.

Here's hoping.
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog. 

He contributed to the CSCA's three part submission to the 2012 David Emerson led Aerospace Review. 

Thursday, July 26, 2018

Three CDN's in the Int'l Institute of Space Commerce (IISC) list of "Top 35 under 35" But Only One Lives in Canada

Image c/o IISC.
        By Henry Stewart

The Isle of Man based International Institute of Space Commerce (IISC), established in 2007 as a cooperative venture between the International Space University (ISU) and the Government of the Isle of Man, has released a listing of the "IISC Top 35 Under 35 Class of 2018" space industry movers and shakers.

As outlined in the July 25th, 2018 IISC press release, "State of the Industry Special Edition; IISC 35 Under 35 Class of 2018," the good news is that three Canadian's are included with the list.

The bad news is that only one of those Canadians still lists Canada as the place where they live and/or work.

The IISC list of top 35 under 35 included the following Canadian's:
  • Joel Spark, the co-founder and CTO of San Franscisco CA based Spire Global, a US based privately held company specializing in collecting and reselling data gathered from a network of more than seventy Earth observation cubesats currently deployed in low Earth orbit. Spark received his engineering BA from Ottawa ON based Carlton University.
  • Tahir Merali, a project management engineer with the Canadian Space Agency (CSA) who remains the only Canadian on the list who currently lives in Canada. Merali lives in Montreal PQ and received his engineering BA from the University of Toronto. 
All three Canadian's honoured spent time at the International Space University (ISU) as did most of the rest of the people on the list.


As outlined in a January, 2018 post to the IISC webpage, "The 2018 35 Under 35 in the Space Industry Awards," the IISC is "proud to recognize and award the brightest young entrepreneurs, innovators, authors, artist, technicians, engineers, researchers, and overall game changers in the space industry as part of its 35 under 35 annual award."

Now if only a few more of them could find jobs in Canada.
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Henry Stewart is the pseudonym of a Toronto based aerospace writer. 

Monday, March 26, 2018

Forging Hi-Tech Links With Potential New Friends

          By Brian Orlotti

On March 24th, the second annual China (Shenzhen) Innovation & Entrepreneurship International Competition, Toronto Division (aka Sci Innovation Competition), was held at the MaRS Discovery District in Toronto, ON.

A quiet weekend with a few close friends. As outlined in the March 24th, 2017 University of Toronto (UofT) Department of Materials Science & Engineering (MSE) post, "International innovation competition comes to Toronto," VIPs participating in the 2017 edition of the Sci Innovation Competition included (from left to right) UofT MSE professor Hani Naguib; deputy Toronto mayor & city councilor Denzil Minnan-Wong; Canada Confederation of Shenzhen Associations chairperson Jenny Qi; Federal minister of innovation, science and economic development (ISED) Navdeep Bains; Chinese Deputy Consul General Xu Wei; and Federal MPs Raj Grewal and Geng Tan. As outlined in the March 23rd, 2018 Electronics Products and Technology post, "Canada’s 20 top new innovators face off," 2018 judges included "a diverse group of business leaders, scientists, academics, and renowned experts in technology and innovation." The list also included more than a few money people such as  Don Wright, the president of the Winnington Capital Group and the director of MaRS Innovation Inc. and Yuri Navarro, the CEO and executive director at the National Angel Capital Organization (NACO). Navarro is also the chief of staff for the Ontario minister of economic development and trade. Photo c/o Hao Shi/ UofT.

Twenty groups of Canadian innovators highlighted Toronto’s vibrant tech startup ecosystem and helped to forge stronger business links with China. Given our current "America First" internationally focused "art of the deal" environment, it always pays to cultivate options.

Begun by the Municipality of Shenzhen, China (a global tech hub), the Sci Innovation Competition is sponsored globally by local governments in Toronto, Silicon Valley, Sydney, Tokyo, Boston, Tel Aviv, London, Stockholm and Berlin.

At the 2018 Toronto competition, the Canadian finalists, winnowed from a field of 208 participants, will pitch their ideas to a panel of twenty-seven judges comprised of business leaders, scientists, academics and renowned experts.

First, second, and third place prizes will be awarded from a venture capital pool of RMB ¥20.9Bln ($4Bln CDN) setup by thirty-four institutions to finance the winning teams. Of the twenty finalists, ten skilled Canadian winners will then head to Shenzhen to take part in the finals in April 2018.

The competition features projects from five industries; IT, biotechnology and life sciences, electronic science and technology, advanced manufacturing and materials and energy and offers prizes totaling RMB ¥10.91Mln ($2.09Mln CDN).


Canadian finalists included:
  • ForceFilm - A Toronto startup that has developed an addon for surgical robots which gives them a sense of touch. ForceFilm’s technology would enable greater surgical precision, reducing risks. ForceFilm is currently seeking approval for its technology from Health Canada.
  • Sapling Robotics Beach Cleaning Rover - A group of engineers from the University of Toronto and the University of Buffalo developing an autonomous, zero-emission, electric beach-cleaning robot. The rover uses self-driving technology and machine vision to operate unsupervised alongside beachgoers at any time, day or night. Sapling’s goal is to replace the diesel vehicles currently used in beach cleaning, eliminating their harmful carbon emissions, loud noises and terrible smells. The team is currently developing a prototype and seeking a partner (i.e. a hotel or local municipality) for a pilot program over the summer. 
  • Qsun Sun Safety Solution - This team has created an AI-powered wearable and companion app that provides a solution to sun-caused skin damage. The device monitors ultraviolet rays, analyzing a user’s exposure to sun in real-time, notifying them when on the verge of a sunburn. The device uses an algorithm that combines the user’s current sun exposure with their skin type, environmental situation and sun safety habits. The device also provides users with tailored recommendations to manage vitamin D levels based on their sun exposure and diet. After a recent sucessful crowdfunding effort on Kickstarter, the team plans to launch a second-generation device this summer.
  • GoFind AI - A California-based startup developing artificial intelligence for shopping. GoFind AI is an instant fashion discovery app that lets people upload images or screenshots to find out where to buy the products they are looking for. The search engine is driven by a learning-trained machine that recognizes textures, colours and shapes and gives users access to 100 million products from more than 1,000 online shops. Along with locating the exact product, the app also brings up similar items at varying price points. The team is working on expanding the search engine to include furniture, houses and cars.
The Sci Innovation Competition provides a welcome new source of capital for fostering innovative Canadian tech startups as well as strengthening Canada’s ties with China.

In the face of a possible US/China trade war and increasing trade threats and extortion from the Trump Administration, Canada must forge stronger ties with new allies if it is to survive and thrive in the coming years.
Brian Orlotti.
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Brian Orlotti is a regular contributor to the Commercial Space blog.

Friday, March 16, 2018

Looks Like Intellectual Property Issues Were Addressed in the 2018 Federal Budget

         By Henry Stewart

According to leading Canadian full service intellectual property law firm Bereskin and  Parr LLP, at least one portion of Canada's 2018 Federal budget outlined changes to Canada's intellectual property (IP) laws intended to help Canada’s innovative companies utilize IP assets to help grow their company.


As outlined in the March 9th, 2018 Lexology post, "A Radical New Way of Thinking about our Innovation Economy: Canada’s IP Strategy and the 2018 Budget," last year’s 2017 budget included reference to a Canadian National IP strategy, in order to facilitate an "innovation ecosystem" where commercialized IP (including patents, trademarks, copyrights, industrial designs, trade secrets and other items)  assist Canadian firms to grow to scale.

This year's budget allocated financing for the strategy, with "an overall commitment" of $85.3Mln for:
  • A pilot patent collective ($30Mln) or "sovereign patent fund," which, as outlined in the May 19th , 2017 Globe and Mail post, "Canada needs an innovative intellectual property strategy," will address the calls from "innovation experts who understand the critical role of IP in a 21st-century economy."
  • The creation of IP education and legal clinics ($21.5Mln) for "clinical legal education to both train and grow the pool of IP expertise, while at the same time providing much needed IP legal services to early stage companies."
  • The development of IP tools ($33.8Mln) to track the pool of IP available at Canadian research institutions and through funding initiatives, which can be taken over and commercialized by Canadian firms. 
As outlined in the March 1st, 2018 post, "'Patent Boxes, our Canadian Space Agency and the Lack of Real Innovation in the 2018 Federal Budget," IP management is a critical component of growing Canada's innovation economy.

It's good to know that others feel the same. At least some of this message seems to be getting through to the Federal Liberal party.
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Henry Stewart is the pseudonym of a Toronto based aerospace writer

Monday, March 05, 2018

That Commercial Ground Station Built by New North Networks in Inuvik Still Can't be Used

         By Chuck Black

After almost two years, that new, private sector commercial ground station built by Inuvik, NWT based New North Networks in Inuvik for San Francisco, CA based Planet and Norwegian based Kongsberg Satellite Services (KSAT), has still not received the second of two sets of Federal government approvals needed to operate under Canadian law.

That delay is likely not the fault of the commercial players.

The five Inuvik satellite receivers, built almost two years ago, look forlorn and lonely today. After the failure of multiple attempts to fulfill Canadian government licencing requirements, the facility remains unable to open for business. Photo c/o Rolf Skatteboe.

For example, New North Networks CEO Tom Zubko, last profiled in the July 24th, 2017 post, "NWT Businessman "Perturbed" By Response to Private Sector Inuvik Ground Station Proposal," is still more than a little perturbed by the situation.

As noted by Zubko in a Monday interview with this blog, KSAT is even attempting to fulfill a contract for the European Space Agency (ESA), an international organization which includes another Federal government department, the Canadian Space Agency (CSA) as a "co-operating" member.

So you'd think the Federal government would at least be interested in not embarrassing one of its departments on the world stage.

But you'd be wrong.

"We are very patiently attempting to wait for a solution to this situation, so that we can open the facility," Zubko noted. He said it takes longer to licence large satellite ground station infrastructure in Canada than it does almost anywhere else in the world and current Canadian law are so onerous and undefined as to act as barriers to entry into the market for new players.

As outlined in the March 5th, 2018 CBC News post, "Inuvik satellite dish installations remain unused, still waiting for final federal approval," two Federal government departments are required to approve the application:
  • The Federal department of Innovation, Science and Economic Development Canada (ISED), which is responsible for authorizing radio licences needed to operate fixed Earth stations in Canada, which finally approved their portion of the ground station application last week. 


From a legal standpoint, the existing barriers favor legacy players, such as the Federal government owned Inuvik Satellite Station Facility (ISSF), administered by the Canada Centre for Mapping and Earth Observation and part of Natural Resources Canada (CCMEO/NRCan), which opened in 2010 and is the only other ground station in the region.

Oddly enough, CCMEO/NRCan is "collaborating" with San Francisco, CA based Maxar Technologies subsidiary MDA (until recently, the Richmond BC based MacDonald Dettwiler) in order to "further develop the site and offer common services at the facility" according to the ISSF website.

However, according to Zubko, "Planet and KSAT, had information they felt was proprietary and didn't want to give to MDA," which goes a long way towards explaining why Planet and KSAT don't want to work through the government run facility.

As outlined in the March 5th, 2018 SpaceQ post, "Planet and KSAT Licensing Issue Enters 22nd Month," both companies have threatened to pull their ground station assets out of Canada by June 1st, 2018, if progress "hadn’t been made in approving their licenses."

According to Zubko, Planet plans to pull out of the project by June 1st, 2018 unless the licences are approved. "They're gone without those licences," he said.

Oddly enough, other ground stations proposals have had their applications reviewed and accepted over the last two years. As outlined in the December 14th, 2017 C-Core press release, "C-CORE satellite receiving station operational in Inuvik," the C-Core ground station is " is optimized for use with today’s emerging generation of breadbox-sized nanosats and cubesats. Its innovative self-leveling platform ensures stability during seasonal frost heave, making it ideal for Arctic deployment." The press release also said that the project was supported by "the Government of Canada’s Networks of Centres of Excellence program" which, at least as outlined in the post, has a mandate to "foster innovation and collaboration in Canada’s remote sensing sector and to promote commercial use of remote sensing technologies to support responsible, sustainable development of northern natural resources." That's just what we need; another government department needing to be consulted in order to move forward. Graphic c/o wireservice.ca.

If the project doesn't move forward, Canada could suffer.

Zubko feels that "Canada has been embargoed when it comes to future international Earth observation and communications missions." He feels that the actions of the Federal government have been "inconsistent" at best and could potentially turn the country into an international pariah, unable to partner with other agencies on future space missions.

"At least Planet has a provisional licence so that they can begin testing," Zubco said. He also noted that, as of this morning, KSAT had only been in contact via e-mail with Global Affairs Canada. 

"And  the government seems to want prior notification of new customers and sales," according to Zubko, which will certainly cause concern given the possibility that the competition from the other Inuvik satellite station facility might also come into possession of the information.

In essence, it's a developing story, waiting for a resolution, which may not happen anytime soon.

Stay tuned...
Chuck Black.
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Chuck Black is the editor of the Commercial Space blog.

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