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My Clean Break column today expresses some disappointment with the Cleantech Group’s latest list of the 100 cleantech companies likely to have the greatest impact over the next five to 10 years. Only two Canadian companies — Enerkem (see image, left, of its Edmonton waste-to-ethanol facility) and Ostara Nutrient Recovery Technologies — made the list, giving Canada the same status as Sweden, France, Norway and Switzerland. The United States dominated the list with 55 companies, and most of those were in California — certainly showing the bias there is toward Silicon Valley.
In all, 3,138 companies from around the world were considered, and that list was whittled down to just over 200 before the rest were thrown to an expert panel who picked the Top 100. Part of the criteria was performance and the ability to raise capital, but certainly a lot of it was just a popularity contest. On both fronts Canadian cleantech startups are at a disadvantage, because we have a more difficult time attracting capital and we do a horrible job of making ourselves known to the world.
Here’s what Nicholas Parker, executive chairman of the Cleantech Group, said when I asked him about Canada’s representation on the list. “There’s no question that U.S. companies attract more attention than those in other countries, but the fact is that while we innovate well in Canada, we’re less good at growing global companies and part of the reason for this is capital scarcity.”
I asked the same thing of Dwayne Matthews, managing director of Canada’s Clean 15 competition and consultancy. Here’s what he had to say:
I think just having two companies on this list is a direct result of not enough promotion of Canadian cleantech. In my experience many global companies that would potentially be interested in partnering with or licensing Canadian techs are not aware of the level of technology that is here. I also think that extends to end users and investors as well. Many cleantech companies here do not spend dollars on strategic marketing and instead opt for classic big trade shows to showcase their technologies. This makes it very difficult to stand out in a crowd if there are 1,500 people, a lot of distractions and no decision makers present. Lots of wasted airfare and card exchange that works if you have deep pockets and an already established brand, however if you have a small war chest you can run out of cash before you get a chance at some of the big deals.
I have also found that many Canadian companies are focused on first developing in the local space and have a very difficult time establishing strong international partner relationships to move into other markets. This may be problematic as much of the demand for cleantech here is not nearly as high as it is in the U.S. and international markets. The two firms that have made the list both have strong relationships outside of Canada.
With the exception of “Clean Break” most cleantech news here does not promote Canadian cleantech or potential opportunities. They promote large investments and Cleantech superstars like the Shai’s and Elon’s of the world. These guys are great, however we need to do better to raise our own superstars to bring eyes to our neck of the woods.
There’s no reason companies such as Morgan Solar, LED Roadway Lighting, Cavet, and Saltworks couldn’t have made the list, and who knows, maybe they were given serious consideration. But clearly, Canadian cleantech companies have to do a better job of getting themselves known. Coming up with great technologies doesn’t do anyone much good if it’s done in isolation.
That said, the choice of Enerkem and Ostara — both companies dealing with municipal solid and liquid waste — shows that one of Canada’s strengths is in the areas of waste management, waste treatment and turning waste streams into revenue-generating products.
