Commercialization Task Force 2003 Interim Report February 2004

Agenda 2003 • Stage 1: Task Force Creation • Stage 2: Problem Definition • Stage 3: Research & Validation • Stage 4: Defining Solutions • Stage 5: Formulating Recommendations 2004 • Stage 6: Selling the Solution Recommendations • Stage 7 Implementation, Monitoring & Feedback

Commercialization Task Force Ottawa-Gatineau Region Institutions Ottawa Centre for Research & Innovation (OCRI) Greater Ottawa Chamber of Commerce (GOCC) Ottawa Life Sciences Council (OLSC) The Ottawa Partnership (TOP) City of Ottawa City of Gatineau Recruitement des Gents d’Affaires (RGA) National Organizations National Capital Institute of Telecommunications (NCIT) Information Technology Association of Canada (ITAC) Canadian Advanced Technology Association (CATA) PRECARN Software Human Resource Council National Research Council (NRC) Academic Institutions & Industry The University of Ottawa School of Management & Faculty of Engineering Carleton University Sprott School of Business & Faculty of Engineering Algonquin College Orbit. IQ 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 3

Mission Develop the “environment” (political, financial, professional, educational) and the means for one in five technology companies to become global leaders in their market segments by 2010. 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 4

Agenda 2003 • Stage 1: Task Force Creation • Stage 2: Problem Definition • Stage 3: Research & Validation • Stage 4: Defining Solutions • Stage 5: Formulating Recommendations 2004 • Stage 6: Selling the Solution Recommendations • Stage 7 Implementation, Monitoring & Feedback

Commercialization – Academic Innovation vs Industry Commercialization Marke t Research Academic Technology Risk Innovation Risk Industry Market Risk Product Development Product Risk 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 6

Commercialization Elements Idea “Commercialization” from Idea to Technology to Prototype. . . Ide a Technol ogy Produ ct Market Channel Satisfied Custom er Viable Busines s Product Commercialization from Product to Channel to Customer to repeat Business. . . 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 7

Problem Definition – Task Force Views The ratio of profitable to non-revenue-generating technology companies in Ottawa-Gatineau is too low The percentage of technology companies crossing the threshold to become mid-size ($50 M annual revenues) companies with global leadership positions in their market segment is much too small Too many companies are being purchased at low valuations and eventually turn into precarious satellite R&D labs – partly from difficulties in creating complete companies There is too much emphasis on R&D and not sufficient on commercialization. VC and other risk capital investments in Ottawa-Gatineau technology community continues to drop to non-sustaining level 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 8

Company Size Distribution G G $5 B Large $500 M Large Medium $50 M Medium $5. 0 M Small businesses Small Businesses $0. 5 M Startups (Product) Maturing Startups (Product Stage) $0. 0 M Early Startups (Technology Stage) Balanced Growth Community Early Startups (Technology Stage) Revenues Market Throttled Community Worrisome statistics • Canadian venture capitalists handed out 60 per cent less money in the 1 st quarter 2003 • In Ottawa the dollar value of VC investments fell 90% to $43 M from $372 M in the same period the year before. The 1 st quarter tally was down about 80% from the $245 M raised in the last quarter of 2002. • 18 firms (mostly already in the portfolio) shared the money compared with 20 firms the year before – 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 9

Agenda 2003 • Stage 1: Task Force Creation • Stage 2: Problem Definition • Stage 3: • Research & Validation University Research – Preliminary Findings • Stage 4: Defining Solutions • Stage 5: Formulating Recommendations 2004 • Stage 6: Selling the Solution Recommendations • Stage 7 Implementation, Monitoring & Feedback

Statistical Research by Ottawa Schools of Management Tyler Chamberlin Shaunak Bapat John de la Mothe Francois Brouard Jerome Doutriaux Vinod Kumar Scott Goodman Ajax Persaud 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 11

Ottawa Companies Distribution by Employment OCRI, Data Base 2 Q 03 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 12

Comparing Technology Regions 9/9/2020 Oxfordshire Silicon Valley Ottawa (1, 095) (25, 787) (1, 043) 1 to 5 49. 2 % 0 to 4 62. 0 % 1 to 5 26. 4 % 6 to 10 16. 7 % 5 to 9 13. 2 % 6 to 10 18. 2 % 11 to 25 14. 6 % 10 to 19 9. 2 % 11 to 25 21. 4 % 26 to 50 8. 8 % 20 to 50 8. 6 % 26 to 50 16. 2 % 51 to 99 4. 9 % 51 to 100 3. 2 % 51 to 99 9. 3 % 100 to 249 3. 3 % 101 to 250 2. 2 % 100 to 249 5. 4 % 250 to 499 1. 6 % 251 to 500 0. 8 % 250 to 499 1. 2 % 500 to 999 0. 4 % 501 to 1000 0. 4 % 500 to 999 1. 1 % 1000 + 0. 5 % 1001 to 2500 0. 2% 1000 + 0. 9 % 2500 + 0. 1 % Proprietary & Confidential to Orbit. IQ Inc. 13

Comparison of Large Corporations (World-wide Revenue) Fortune 500 High Tech Sector Silicon Valley Rank Company Revenue Canadian ($MUS) Company Rank Revenue ($MUS) Hewlett Packard 14 58, 588 BCE 390 13, 020 Intel 58 26, 764 Nortel 470 10, 701 Cisco 95 18, 915 Cognos n/a 500 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. Fortune 500 World’s largest Source: 14

Initial Findings High Percentage of firms in the 10 -100 employee range probably due to $3 B venture capital inflow from 2000 -2003 Distribution of firms by size (local employment) comparable to other tech centres except: Ø At very low end, Ottawa has fewer § Ø Is the recent 50% increase in the number of tech companies sufficient to create a future pool of large successful tech companies? At the very high end, Ottawa has more Ottawa-based large companies small in size compared to Silicon Valley (both in employment and sales) Ottawa-based large companies tend to be branch operations of multinationals 9/9/2020 Proprietary & Confidential to Orbit. IQ Inc. 15

Agenda 2003 • Stage 1: Task Force Creation • Stage 2: Problem Definition • Stage 3: Research & Validation • Stage 4: Defining Solutions • Stage 5: Formulating Recommendations 2004 • Stage 6: Selling the Solution Recommendations • Implementation, Monitoring & Feedback Stage 7

Selling the Recommendations Work with Industry to finalize the details of the recommendations Present Recommendations to Federal Government Ø Industry Canada Meeting Ø other meetings. . . Present Recommendations to Provincial Governments Ø Ontario Ø Quebec Ø Others Present to Municipal Authorities 9/9/2020 Ø Ottawa Ø Gatineau Proprietary & Confidential to Orbit. IQ Inc. 17

Orbit. IQ Inc. 1376 Bank Street Suite 510 Ottawa ON K 1 H 7 Y 3 Canada Tel: 613. 260. 5007 Fax: 613. 260. 9493 www. orbitiq. com The enclosed material is confidential & proprietary to Orbit. IQ Inc. and is for the internal use of addressee only.