Invest Quebec City in Region Web

8/3/2019 Invest Quebec City in Region Web

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in the QuebecCity metropolitan

region

INVEST


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Despite its Old Europe charm, theQuebec City metropolitan region isresolutely orward-looking in its embraceo cooperation and optimism. Residentsdream o high-speed rail links, major

international cultural and social eventsand the Olympic Games and theyredoing everything they can to make thesedreams a reality! Every day, the businesscommunity works to strengthen its role inkey international sectors such as architec-ture and green buildings, insurance andnancial services, biopharmaceuticals,multimedia, nutraceuticals, optics andphotonics, natural health products andmedical technology. Serving as a catalystor major scientic and technological

advances, the region is known or itsdaring approach and or promoting thebest ideas, especially when theyre aimedat urthering progress and reconguringglobal markets. Ater all, the uturedepends on innovation!

So does the Quebec City metropolitanregion have the means to realize itsambitions? The simple answer is YES, asborne out by the key economic indicators!

Quebec Citymetropolitan region

AndrChamorel

Quartier Saint-Roch, Quebec City


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This sense o condence is reinorced bythe regions numerous selling points: abooming economy, ultra-low start-up andoperating costs, outstanding quality olie, one o the best educated workorcesin North America and a remarkable poolo researchers and specialized workers. Inshort, Quebec City oers ideal conditionsor investors and a whole lot more!

According to a number o prestigiousorganizations, the Quebec City metropoli-tan region is one o North Americas mostattractive locations.

The tables and gures presentedthroughout this document compare theQuebec City metropolitan region with NorthAmerican metropolitan regions with at

least one million inhabitants (not includingWinnipeg). In economic and other terms,all o these regions are comparable withQuebec City. They were selected on thebasis o their partnership links withQuebec City, competitive advantagesand R&D momentum.

I now invite you to discover the QuebecCity metropolitan region and its variousattractions and activities. I wouldnt beat all surprised i, ater reading this publi-cation, you were tempted to learn more

about our regions storied history anddedication to success. And wed be happyto meet you and work with you on thedevelopment and delivery o your projects.

Carl Viel, Chie Executive Ocer

Winnipeg

Quebec City

Raleigh

Salt Lake City

Edmonton

Hartford

Ottawa

Calgary

Milwaukee

Nashville

Indianapolis

Columbus

Cleveland

Cincinnati

VancouverDenver

Baltimore

St-Louis

Seattle

Montreal

Boston

Toronto

Philadelphia

0

500

000

1

000

000

1

500

000

2

000

000

2

500

000

3

000

000

3

500

000

4

000

000

4

500

000

5

000

000

5

500

000

6

000

000

Sources: Conference Board of Canada, U.S. Census Bureau

Population of selected metropolitanareas in North America (2008)

Quebec City

Salt Lake City

Denver

SeattleWinnipeg

Edmonton

Calgary

Ottawa

CincinnatiSt-Louis

IndianapolisColombus

ClevelandMilwaukee

Montral

BostonHartord

Vancouver

Toronto

PhiladelphieBaltimore

RaleighNashville


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Overview

2Parcours des Anses, Ville de Lvis


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Known or its breathtaking beauty, the Quebec City metropolitan region has experiencedrecord growth in recent years. Resolutely ocused on 21st century solutions, the regionhas capitalized on the rise o inormation technology and communications by diversiyingits economy and developing sectors o excellence, thereby garnering itsel a leading roleon the world stage.

The Quebec City metropolitan region is home to one o the highest concentrations oresearchers and research acilities in Canada and the US Northeast. This intellectualcapital serves to oster creativity and develop cutting-edge industrial sectors throughoutthe region, attracting growing numbers o specialized workers and innovative rms.

Buoyed by this economic vitality, companies across the region are prospering in thecut-throat global economy by embracing innovation. And their presence in Quebec Cityoten gives them a competitive advantage over their rivals:

- The Quebec City region has one othe largest pools o creativeworkers in Canada;

The region has some o the loweststart-up and operating costs inNorth America. Rental costs in theQuebec City metropolitan region aremuch lower than in other Canadianmetropolitan regions, despite thesignicant rise in the Canadian dollar;

Canadas banking system is the most solid in the world .1 Investments are

protected, whiletax rates on corporateincome are low;

The cost o living in the Quebec Citymetropolitan region is low. Housingprices are very competitive, whilethe region has one o the lowestination rates in the country.

Open-minded, tolerant, dynamic and creative, the Quebec

City metropolitan region also boasts unbeatable quality

o lie. Growing numbers o immigrants, workers and

businesses are orging their utures in Quebec City.

3,0

2002 index= 100

2,5

2,0

1,5

1,0

0,5

0

2002 2003 2004 2005 2006 2007 2008 2009

115

110

105

100

95

90

Inflation rate (l)

Inflation rate in the Quebec City CMA

CPI (r)

Sources: Conference Board of Canada and Qubec International

%

1 According to the World Economic ForumsGlobal Competitiveness Report 2009-2010.


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Economy

In North American terms, Quebec City isone o the most dynamic, cutting-edgeand economically attractive metropolitanregions, maintaining its leading positionyear ater year.

The Quebec City metropolitan regionis Canadas seventh largest censusmetropolitan area (CMA2 ), although itsextraordinary economic vitality otenpropels it into the top ranks o Canadasmajor cities.

4Quebec City by night


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Strong andresilient economy

Over the past two decades, regionaleconomic growth has been driven byeconomic diversication, backed by avigorous labour market and growingprivate investment. This impressivetrack record has been accompaniedby sustained demographic growth.Even during the depths o the global

recession in 2009, the local labourmarket remained relatively strong.Overall, growth in the Quebec Citymetropolitan region was quicker andmore pronounced than in other partso Canada: 2010 kicked o with thegood news that 1,000 to 2,000 newjobs will be created in the regionover the next 12 months.

As the seat o the provincial government,Quebec City is home to a large numbero civil servants, while workers in thethriving insurance and nancial servicessectors also bolster economic stability,in addition to protecting against globaleconomic fuctuations.

In addition, the rate o gross domesticproduct growth in the Quebec Citymetropolitan region is one o the highest

in Canada. Between 2003 and 2008,regional GDP rose by nearly 2% annually.In terms o GDP growth, the regionranks frst in Eastern Canada.

Salt Lake City

Winnipeg

Hartford

Seattle

Boston

Edmonton

Quebec City

Vancouver

Baltimore

Calgary

Milwaukee

Ottawa

Nashville

Philadelphia

Montreal

Toronto

Denver

Cleveland

Raleigh

St-Louis

Indianapolis

Columbus

Cincinnati

-0,3 0,0 0,3 0,6 0,9 1,2 1,5 1,8 2,1 2,4 2,7

Average annual real GDP growthper capita between 2003 and 2008 (%)

Sources: Conference Board of Canada, U.S. Bureau of Economic Analysisand Qubec International

Sample of 20 metropolitanareas in North America

2 A CMA must have a population o 100,000 or more.


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6

Diversifiedeconomic growth

The Quebec City metropolitan regionprovided 391,700 jobs in 2009, with

business services, public administration,nance, insurance, transportation andcommunications accounting or 40.4%o local workers. Virtually all o thesesectors expanded signicantly over thepast 20 years, while some have becomekey drivers o the regional economy.The strongest growth areas are nance,insurance and real estate, whichaccounted or 9.6% o the labourmarket in 2009,3 up rom 5.3% in 1987.

Between 1987 and 2009, employmentmore than doubled in the proessional,scientic and technical services sector,rising rom 12,700 to 27,800 jobs. Theinormation, cultural and recreation andbusiness services sectors also perormedvery well.

Employment in the

Quebec City CMA in 2009 4

30.1 % public services

26.9 % driving services 5

26.7 % household services 6

8.5 % manuacturing

5.1 % construction

The Quebec City metropolitan regionhas capitalized on the rise o technology

by embracing economic diversicationand key sectors o excellence andestablishing a rm oothold in theknowledge economy. Insurance andnancial services, architecture and greenbuildings, biopharmaceuticals, multime-dia, nutraceuticals, optics and photonics,natural beauty products and medicaltechnology have all perormed welland made key contributions to regionaleconomic perormance in terms o jobcreation and production growth.

3 Statistics Canada, Labour Force Survey, 2009 and 2008 Comparative Economic Analysis, Quebec City Metropolitan Region, Conerence Board o Canada, 2009.4 2008 Comparative Economic Analysis, Quebec City Metropolitan Region, Conerence Board o Canada, 2009.5 Driving services: Finance and Insurance, Proessional, Scientic and Technical Services, Administrative Services, Inormation industry and Wholesale Trade.6 Household services: Retail Trade, Transportation and Wharehousing, Cultural Industry, Accomodation and Food Services and Other Services.

We are pleased to be contributing to the economic and technological developmentof the Quebec City metropolitan region by establishing our production and R&Doperations here. Featuring state-of-the-art technology, our new facility in Quebec

City is where our polymerase chain reaction-based in vitro diagnostic productssuch as BD GeneOhmTMare manufactured. This is a major achievement for us,and we couldnt have made it happen without your assistance.

Ernie Ritchey

Director o Operations in charge o BD Diagnostics-GeneOhmsacility in Quebec City

Luxigon

International architectural competition winning projecto the Muse national des beaux-arts du Qubec.


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Major investment and infrastructure projects: record numberof building permits issued in Quebec City in 2009

Construction cranes and jackhammers will continue to be prominent eatures o thelocal landscape in 2010 as new transportation inrastructure is developed and major

industrial and commercial projects are launched. Governments at all levels will beinvesting in the region by undertaking initiatives aimed at upgrading educationalacilities, building new research laboratories in the health sector and developing newsports and recreation acilities. Investments totalling nearly $11.3 billion have beenannounced or are underway.

1,21,4

1,6

1,8

2,0

1,0

0,8

0,6

0,4

0,2

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Total value of building permits

Sources: Statistics Canada and Qubec International

$ billions

Gold and silver medals 7

In terms o GDP growth, the Quebec City metropolitan region ranks frst in Eastern Canada, according to a study conducted by theConerence Board o Canada in 2008. In 2007, regional GDP grew by an impressive 3.1%, garnering a gold medal. Quebec City alsowon gold in KPMGs ranking o urban areas with low business start-up and operating costs, which are unrivalled in NorthAmerican and international terms. Between 1999 and 2005, real GDP in the region grew by an average o 3% annually, while theconstruction sector recorded average growth o 5.8%. In terms o job creation, the Quebec City region won silver in 2007, with

employment growth topping 2.4%, outperorming many o the other regions studied.

7 Comparative Economic Portrait 2008, Quebec City Metropolitan Region, Conerence Board o Canada, 2009.


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Talent andhuman capital

Well educated and creative, the residentso the Quebec City metropolitan regionthrive on groundbreaking projects andnew ideas. Thanks to the vibrant localcommunity and regional economy,

immigrants continue to fock to QuebecCity, uelling demographic growth.

Thanks to the presence o majoruniversities in the region, a highlyqualied workorce is available and readyto take on a ull role in the creation oinnovative companies and other aspectso community development.

8

#1 In Canada in terms o numbero university students

#1 In Canada in terms o thenumber o graduate students(masters/doctoral level)

#2 In Canada in terms o the numbero university graduates in the25 to 64-year-old group

CamirandPhoto

CamirandPhoto

Place Royale in the Old Quebec City quarter.


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Well-educated population

One o the most striking things aboutthe Quebec City metropolitan region isthe proportion o people in their 20s:more than in any other part o Quebecor Canada!8Approximately 14.1%o the local population is in the 20 to29-year-old age group, compared withthe provincial average o 12.8% andthe Canadian average o 12.9%.

Another striking thing about the region:90% o people o working age have at

least a high-school diploma. As a percen-tage o the total population, Quebec Cityranks just behind Boston in terms o thenumber o university students!

In North American terms, the QuebecCity metropolitan region has one o thehighest concentrations o universitystudents, with a larger proportion ograduate students than in any othermajor Canadian city.

Hartford

Columbus

Boston

St-Louis

Philadelphia

Raleigh

Cincinnati

Baltimore

Vancouver

Quebec City

Ottawa

Tampa

Calgary

Denver

Toronto

Richmond

San Diego

Edmonton

Montreal

Winnipeg

82 83 84 85 86 87 88 89 90 91 92

Population aged 25 to 64 with at least a high school diplomaor equivalent (% of population aged 25 to 64)

Sources: Statistique Canada; U.S. Department of Education, Institute for Education Sciences, National Center forEducation Statistic Integrated Postsecondary Education Data System (IPEDS); U.S. Census Bureau

Sample of 20 metropolitan areas in NorthAmerica, 2006

8 Statistics Canada, 2006 census.


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Boston

Quebec City

Winnipeg

Ottawa

Montreal

Columbus

Hartford

San Diego

Philadelphia

St-Louis

Cincinnati

Baltimore

Richmond

Edmonton

Raleigh

VancouverToronto

Tampa

Calgary

Denver

2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0

University students (% of population)

Sources : Statistique Canada; U.S. Department of Education, U.S. Census Bureau and SECOR

Sample of 20 metropolitan areasin North America, 2008

Boston

St-Louis

Baltimore

Quebec City

San Diego

Hartford

Philadelphia

Montreal

Denver

Ottawa

Richmond

Columbus

Raleigh

Cincinnati

Edmonton

VancouverWinnipeg

Calgary

Tampa

Toronto

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.61.4 2.01.8

Students enrolled in graduate programs (% of population)

Sources: Stati stique Canada; U.S. Department of Education, U.S. Census Bureau and SECOR


VilledeQubec

VilledeQubec

Jardins Saint-Roch Universit du Qubec10


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Immigration growth

The Quebec City metropolitan region hasseen a net increase in both internationaland internal migration since 2001. This isno doubt due to the robust labour market,

as well as to strong economic growthand diversication over the past 20 years.

Most o these new residents camerom other regions o Quebec or romelsewhere in Canada, according toStatistics Canadas 2006 census.

In addition, Quebec City attracted moreimmigrants rom 2001 to 2006, withthat period accounting or 34% o thetotal current immigrant population.And its very likely that most o these

new immigrants will stay: the immigra-tion retention rate in the Quebec Citymetropolitan region is nearly 85%, asopposed to 80% in Canada as a whole.A regional international recruitment por-tal has been established to ensure thatthe region benets rom oreign workersexpertise. www.1888mevoila.com

9 Prosperity Scorecard or Quebec City, Dr. Kevin Stolarick, Martin Prosperity Institute, Rothman Schoolo Management, University o Toronto, June 2009.

Creative workforce

In the globalized economy, urban prosperity hinges on the ability to attract andretain intellectual capital. In other words, Quebec Citys prosperity is a sure bet!According to a 2009 study by the Martin Prosperity Institute,9 the Quebec Citymetropolitan region comes rst in its category in terms o creativity. This rankingis based on three variables: talent, technology and tolerance. These variableswere studied in 11 metropolitan regions o comparable size across NorthAmerica, with the Quebec Ci ty metropolitan region easily outpacing the others:

#1 Employer or workers in the creative class in North America

#1 Technological pool (high technology jobs, number opatents and growth in the number o patents over a 5-yearperiod) in North America

#1 Pool o workers (ability to attract and retain talentand workers in the creative class) in North America

#1 Openness and tolerance in North America

CamirandPhoto

Valcartier Vacation Village


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12

Main post-secondary institutions

Laval University

As the leading rancophone post-secondary institution in the Americas, Laval Universityoers some 400 regular programs at the bachelors, masters and doctoral levels. As anindication o its wide-ranging ocus, it includes 17 aculties and 60 departments, schoolsand institutes. Every year, more than 44,000 students attend Laval Universitys maincampus in the heart o Quebec City.

Recognized or its pioneering work in various elds o endeavour, Laval University isone o Canadas oremost research institutions and creative hubs. In 2010, its externalresearch unding topped $270 million. With 222 research chairs, centres and institutes,it is the only university in the country with three Canadian networks o centres oexcellence: the Canadian Institute or Photonic Innovations; Geomatics or EnlightenedInterventions and Decisions (GEOIDE); and ArcticNet, which studies the impact oclimate change along Canadas Arctic coast.

Building on its deep roots in the region, Laval University places special emphasis onpartnerships. It also supports the eorts o private and public organizations to ullydevelop their resources. The ollowing is a key indicator o the strong bonds o partnershipbetween Laval University and the Quebec City metropolitan region: 25.6% o theinstitutions research unds come rom non-governmental partners, as opposed to anaverage o 16.3% or other Quebec universities. Committed to the betterment o thesociety we live in, Laval University is playing an ever-greater international role, havingentered into 570 partnershipagreements with other post-secondary institutions inover 65 countries. Laval University is also an international player in key research areassuch as health sciences, environmental studies, bio-ood sciences, genomics, soundand image technology and obesity studies.

To date, 224,000 men and women have graduated rom Laval University, includingthree Canadian prime ministers and eight Quebec premiers.10

A nationwide university networkbased in the Quebec City metropolitan region

Quebec City is home to the headquarters o the University o Quebec, Canadas largestpost-secondary network, with nine teaching institutions, 5,000 proessors and instructorsand over 87,500 students enrolled in more than 750 programs, including several distancelearning options. The UQAR campus in nearby Lvis also welcomes local and interna-tional students pursuing their post-secondary education in a human-centred environmenton the banks o the St. Lawrence River. The University o Quebec is also home to theNational School o Public Administration (ENAP), the University o Quebec Press(PUQ), Tl-Universit and the National Institute o Scientifc Research (INRS),including the Water, Earth and Environmental Centre, which ocuses on our mainresearch areas (hydrology, environmental rehabilitation/waste recycling, aquatic/terrestrial biogeochemistry and geosciences).

Technical schools

The regional picture is completed by a variety o vocational secondary schools, technicalcolleges and specialized institutes. Located in downtown Quebec City, the National Schoolo Interactive Entertainment (ENDI) provides students with a unique opportunity to honetheir video game skills in a simulated environment combining production techniques anda corporate immersion program. Moreover, the nancial and insurance sector can count onthe support o the Insurance and Financial Services Development Centre, which enablesgraduate students to acquire in-depth knowledge.

10 Beginning with Edmund James Flynn, Conservative Party leader elected Quebec Premier in 1896, andcontinuing on through the Honourable Jean Chrtien, Liberal Party leader elected Canadian Prime Ministerrom 1993 to 2003, 11 Quebec and Canadian rst ministers have received law degrees rom Laval University.

Campus de lUniversit du QubecVilledeQubec


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Le Petit Sminaire de Qubec


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Innovation and creativityNearly $800 million is invested in research and development in the Quebec Citymetropolitan region every year.11But the human imagination will always be morepowerul than money and there is a concentration o creativity in the Quebec Citymetropolitan region like nowhere else!

14The Image Mill

ExMachina


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Home to some 6,000 researchers and associates, the region has one o the highestconcentrations o research centres in Canada, with nearly 400 labs, groups, consor-tiums, institutes and R&D centres. Among Canadian metropolitan regions, QuebecCity has the highest proportion o university researchers and outpaces Canadas threelargest cities (Montreal, Toronto and Vancouver) in terms o research unding and thenumber o scientic publications.

Edmonton

Quebec City

Toronto

Montreal

Vancouver

Ottawa

Calgary

Winnipeg

University research fundingper 100 researchers CA$ millions

Top 8 Canadian metropolitanareas, 2008

Sources: Research Infosource and SECOR

10 12 14 16 2018 24 302822 26 32

Edmonton

Ottawa

Quebec City

Vancouver

Winnipeg

Montreal

Calgary

Toronto

100 120 140 160 180 200 220 240 260 280

Scientific publications per 100,000 population



Quebec City

Winnipeg

OttawaMontreal

Edmonton

Calgary

Vancouver

Toronto



60 80 100 120 140 160 180 200

Number of university researchersper 100,000 population

11 Source rom page 14: Quebec Ministry o Economic Development, Innovation and Export Trade (MDEIE).


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16

The large number o research centres and researchers in the Quebec

City metropolitan region osters the development o high-tech industries,

including optics and photonics, green buildings, nutraceuticals,

biopharmaceuticals, medical and environmental technologies

CHUQCanada's leadingbiomedical research centre

What is the connection between aprostate cancer hormone treatment anda new diagnostic test or bladder cancer?Both were developed at the CHUQResearch Centre. Formed rom themerger o three leading Quebec Cityhospitals (and their respective researchcentres), CHUQ has fourished, becominga major catalyst or hospital researchin Canada. Among other innovations,it played a key role in the discovery oan immune system mechanism used toprevent neurological damage associatedwith Alzheimers disease, as well as inthe development o DNA-based diagnostictests used to identiy inectious agents in

less than one hour.

DRDC-ValcartierCanada's leading nationaldefence research centre

With its state-o-the-art inrastructure,Deence Research and DevelopmentCanada (DRDC) develops prototypes oweapons systems as well as command,

control, inormation, communications,intelligence, surveillance and reco-gnition systems. Approximately 50%o its R&D program is undertaken inpartnership with industry stakeholders,who capitalize on the opportunity totake part in research projects with NATOmember countries or to access a virtualimmersion lab, an aeroballistic tunnel,a hyperspeed impact research lab and amobile hyperspectral measurement lab.

INOCanada's leadingapplied optics and photonicsresearch centre

The importance o the regional opticsand photonics industry is largelyattributable to the National Optics

Institute (INO). As Canadas only centreo industrial-ocused optics andphotonics expertise, INO has carriedout 24 technology transers since themid-1980s leading to the creation onew companies, as well as 40 othertransers that have enabled existingrms to boost their productivity,eciency and product oer.

FPInnovationsthe world's leadingnon-profit forestresearch institute

Can an entire building be made out owood? O course! Not only will it be justas solid as with concrete or steel beams,

but negligible amounts o greenhousegases will be produced during construc-tion! In the near uture, FPInnovationshopes to export its expertise worldwideand to convince the construction industryto and adopt its new wood processingand technologies techniques.

and natural health products. The ollowing provides

an overview o the regions main research centres:


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INRS - Water, Earthand Environmentglobal environmental leaderin the areas of water and

geological resources

The regional outlook or water and geologicalresources is bright thanks to the eorts o

researchers at National Institue o ScientifcResearchs Water, Earth and EnvironmentCentre (INRS-ETE). The Institutes scienticprogram ocuses on our main areas: hydrology,environmental rehabilitation/waste recycling,aquatic/terrestrial biogeochemistry andgeosciences. These areas ace a numbero common strategic issues, including riskssurrounding extreme natural events or human-generated contamination, the impact o climatechange on resources, resource use andnecessary adaptations, water/mineral resource

management and related land use planning andrehabilitation/decontamination technologiesor urban and natural environments.

INAFsetting the standardfor food technologyresearch

The natural products industry isthriving in the Quebec City metropolitanregion thanks to the Nutraceuticals

and Functional Foods Institute(INAF), which studies interactionsbetween oods and their components,as well as nutrition and health in amulti-disciplinary setting. An interna-tionally recognized research andtraining leader, INAF developsemerging sciences (such asnutrigenomics) and high technologyapplications (such as the in vitrodigestive system simulator, the onlyone o its kind in Canada).

IUCPQleader in the treatment

of heart/lung disordersand obesity

Dedicated to basic and clinicalresearch,the Qubec UniversityInstitute o Cardiology and

Pneumology has propelled Canadainto the top ranks o researchersstudying obesity, a growing healthproblem. Thanks to the eortso three IUCPQ researchers,ScienceWatch ranked the Institute18th among more than 30,000research institutions worldwide interms o the number o scienticpublications on obesity.

CRULRGcutting-edge braindisease research

Over the past ew decades, the regionalbiopharmaceutical industry has beenbolstered by the eorts o the LavalUniversity/Robert Giard ResearchCentre, where a sta o 400 people(divided into 55 research teams) arestudying neurons and brain unction.Since it was ounded in the mid-1980s,the CRULRG has recorded averageannual growth o 20%, with the rateaccelerating in recent years. Today, itis in the Canadian Top Five, althoughrecently announced investments couldhelp bring it into the worldwide Top Five!


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Costs andcompetitiveness

In a globalized economy, companiesmust compete with the emergingcountries, including Brazil, China andIndia. Against that backdrop, businessstart-up and operating costs, payroll

costs and rental costs can be key actorsdetermining whether rms merely stayin the game or eventually rise to the top.In this regard, companies in the QuebecCity metropolitan region enjoy asignicant competitive advantage overtheir North American rivals.

18Beenoxs head oce in Quebec City.

VilledeQubec


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Generally speaking, it is much cheaperor companies to start up operations inthe Quebec City metropolitan region thanit is elsewhere in Canada or in the US.Over the past decade,the region hasled the North American rankings interms o low ater-tax start-up andoperating costs12 among cities in thesame category.

In 10 out o 18 economic sectors (biome-dical R&D, clinical trials, pharmaceuticalproducts, electronic system testing, webcontent developpement/multimedia,advanced sotware design, precisionmanuacturing, auto parts, metalmachining and ood processing), overallbusiness operating costs are much lowerin the Quebec City metropolitan regionthan they are on average in comparableUS cities. R&D companies in theQuebec City metropolitan region beneftrom 20% to 27% lower start-up and

operating costs, while frms specia-lizing in Web content, multimediaand high-tech sotware enjoy acomparative advantage o 20% to22% in this regard.

12 Competitive Alternatives, KPMG 2010.

Quebec City

Winnipeg

Montreal

Vancouver

Edmonton

Toronto

Raleigh

Buffalo

Nashville

Baltimore

Indianapolis

Salt Lake City

Milwaukee

St-Louis

Philadelphia

Denver

Hartford

Seattle

Boston

San Diego

88 90 92 94 96 98 100 102

Average business operatingcosts for 18 industries (%)

Sources: KPMG and Qubec InternationalNote: Average for U.S. cities = 100.

Sample of 20 metropolitanareas in North America2010


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20

Electronic Systems Testing

Web Content Development/Multimedia

Advanced Software

Biomedical R&D

hared Service Centre

Oil and Gas Equipment

Medical Device Manufacturing

Pharmaceutical Products

Telecom Equipment

Electronic Components

Metal Machining

pecialty Chemicals

Aircraft Parts

Auto Parts

Precision Components

Food Processing

Plastic Products

0 5 10 15 20 25 30

Quebec City's cost advantage (%)compared with the average for

U.S. cities, by industry, 2010

Sources: KPMG and Qubec International


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Average annual salaries (US$) overview of 11 typical occupations

Biochemist

Computer Engineer

oftware Developer

Product Development Manager

Electrical Engineer

Optical Engineer

Mechanical Engineer

Microbiologist

oftware Programmer

Optics and Photonics Technician

Boston Denver Raleigh St-Louis

221,105 321,415 294,185 287,441 281,232

88,552 103,068 94,780 91,588 90,912

87,281 103,729 95,055 93,068 91,324

85,896 101,173 92,723 90,723 89,061

84,574 102,838 93,805 89,631 90,292

81,111 100,964 92,416 89,801 90,682

80,927 94,604 86,634 84,020 84,963

74,923 91,987 84,263 81,647 82,594

74,827 85,849 79,121 76,032 75,503

67,561 81,796 75,273 72,821 71,229

46,576 53,548 48,660 45,941 46,676


Sources: Economic Research Institute and Qubec InternationalNote: Exchange rate used: US$1 = CA$1.04 (1st quarter 2010)

QuebecCity


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Business environment

22

Canadas political, economic and cultural stability are the envy o the world. Thanks torigorous regulation and monitoring, the national banking system is known or its solidityand transparency, while investments are also protected. As one o North Americas oldestparliamentary democracies, the province o Quebec is also known or its political andeconomic stability. Together with the Canadian government, the Quebec government seeksto oster business development by reducing the corporate tax burden as much as possible.

In this pro-investment and pro-development environment, the Quebec City metropolitanregion is particularly attractive to businesses. The evidence is on display in KPMGs 2010Competitive Alternatives study, which named Quebec City the best place to dobusinessin Canada and the US among cities o 500,000 to 1.5 million inhabitants!


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Investor protection

As regards investor protection, Cana-das banking system is in the worldwideTop Five.15In particular, investors areprotected by nancial reporting by hedgeunds and by inormation disclosuresconcerning investment products tiedto hedge unds.

Pro-businessregulatory environment

Canada ranks eighth in the listing opro-business countries and second interms o business creation.16In otherwords, its easy to do business and

create companies in Canada because theregulatory environment is so pro-business.

Low tax rates

In 2008, the income tax rate or R&Dcompanies in Quebec City was 22.9%.The metropolitan region boasts one othe lowest corporate tax rates in com-parable North American regions, rankingnumber three 17 in this regard. Quebec

Citys R&D sector stands out in termso its very low corporate tax rate (only19.4%). The region also boasts low taxrates in the services and manuacturingsectors (28.5% and 25.8% respectively).

13 According to the Global Competitiveness Report 2009-2010, produced by the World Economic Forum.14 According to the Global Competitiveness Report 2009-2010.15 Rating o 8.3, according to the Global Competitiveness Report 2009-2010.16 According to Doing business 2010, produced by The World Bank Group.17 Competitive Alternatives, Special Report: Focus on Tax, KPMG 2010.

Canada's banking systemsolid as a rock

Canadas banking system is the mostsolid in the world.13Backed by the

Banking Charter, it is more closelyregulated than in other countries.Financial institutions also receive closescrutiny rom the nancial and securitiesauthorities. Thanks to this vigilantapproach, Canada emerged rom therecent global nancial crisis in bettershape than the other G 20 countries.

Financial markettransparency

Canada is in the worldwide Top Threein terms o fnancial market sophis-tication.14The national banking sectoris trustworthy and transparent, while thenancial markets are regulated with aview to adequately protecting investorsand other economic stakeholders.


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24


Sources: Competitive Alternatives, Special Report: Focus on Tax, KPMG 2010 and Qubec International

Corporate income tax rates

Montreal -24.6% Quebec City 3.4% Montreal 9.3%

Quebec -22.0% Montreal 15.1% Quebec City 9.7%

Edmonton -18.0% Edmonton 25.1% Winnipeg 10.0%

Winnipeg 0.0% Toronto 25.5% Edmonton 14.0%

Toronto 6.3% Winnipeg 27.0% Toronto 15.1%

San Diego 16.3% Baltimore 36.3% Baltimore 25.0%

Boston 17.3% Denver 36.8% Hartford 25.6%

Hartford 18.1% St-Louis 37.2% Raleigh 26.2%

Baltimore 19.1% Hartford 38.0% Denver 26.3%

Raleigh 19.4% Raleigh 38.1% Boston 27.8%

Denver 19.6% Boston 39.0% St-Louis 27.9%

St-Louis 21.1% San Diego 39.6% San Diego 29.6%

Research and Development Services Manufacturing

Tax rate comparison

In 2009, the province o Quebec had the most competitive tax rates in Canada andthe US. By 2012, the ederal corporate income tax rate will be reduced signicantly,refecting the Canadian governments commitment in this regard. Among the G20

countries, Canada will soon have the lowest tax rate on new business investments.


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Manufacturing companies - Effective tax rate (%)

Quebec

Ontario

Texas

Illinois

California

New Jersey

Massachusetts

New York

Canadian provincesor US states Federal Provincial/state TOTAL

18.00 11.90 29.90

18.00 12.00 30.00

34.65 1.00 35.65

30.50 7.30 37.80

31.91 8.84 40.75

31.85 9.00 40.85

31.68 9.50 41.18

29.00 7.10 46.15

Sample of Canadian provincesand US states, 2010

Sources : Invest Quebec and Qubec InternationalNote: Exchange rate is US$1 =CA$1.04 (1Q10)

Non-manufacturing companies - Effective tax rate (%)

Quebec

Ontario

Texas

Illinois

California

New Jersey

Massachusetts

New York

Florida

Canadian provincesor US states Fdral Provincial/state TOTAL

18.00 11.90 29.90

18.00 12.00 30.00

34.65 1.00 35.65

30.50 7.30 37.80

31.91 8.84 40.75

31.85 9.00 40.85

31.68 9.50 41.18

29.00 7.10 46.15

33.08 5.50 38.58

Sample of Canadian provincesand US states, 2010

Sources : Invest Quebec and Qubec InternationalNote: Exchange rate is US$1 =CA$1.04 (1Q10)

AndrChamorel

Fontaine de Tourny


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Ultra-moderninfrastructure

Extending rom central Quebecto the US border, the Quebec Citymetropolitan region boasts ultra-modernhigh-perormance inrastructure orminga world-class intermodalnetwork.

In just a ew years, Quebec City shouldbe connected to other major NorthAmerican urban areas by a high-speedtrain link. A related project is currentlyunder consideration and garneringsupport rom a growing number oCanadian and US ocials.

TelecommunicationsIn 2012, Canadas rst large-scalebre-optic network will be rolled out.All told, $225 million will be investedin this broadband technology project.In this regard, the Quebec City metro-politan region, together with Bostonand San Francisco, can be describedas breaking new ground in termso digital connectivity andcompetitiveness.

Air transportation

Located just 20 minutes romdowntown Quebec City, Jean LesageInternational Airport continues to pursuethe path o modernization. Since 2008,

operations have expanded steadily, withour new carriers and new destinations:indeed, it was one o the ew Canadianairports to record a trac increase in2008-2009 in the middle o the globaleconomic downturn! In 2010, JeanLesage International Airport willoer connections to more than250 cities around the world, withnon-stop service to 29 cities includingToronto, New York, Washington, Chicago,

Cleveland, Detroit, Bordeaux, Marseilleand Paris.

Regional synergyand mobilization

In 2007, the regional business communityadopted strategic rameworks and action

plans aimed at better positioning itssectors o excellence on the internationalstage. Approximately $25 million inprivate and public unding has alreadybeen committed to this initiative. By2012, $1 billion will have been investedin projects designed to stimulate thecreation o 10,000 jobs.

Key industries in the Quebec City region:

Insurance and fnancial services

Environment and energy

- Environmental servicesand green technology

- Oil, natural gas, clean energy- Green and intelligent buildings

Lie sciences

- Biopharmaceuticals- Medical technology- Natural health products

Inormation andcommunication technologies(ICT) and electronics

- Multimedia creation- Optics and photonics- Geomatics and

geospatial technology- Security, deence and

emergency preparedness

Food processing

- Health oods

Transportation and materials

- Plastics and compositematerials

- Wood processing- Metal products- Transportation material

Gene H. Kruger Pavilion, Laval University26


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From Quebec City to: Montreal

160 miles 470 miles 500 miles 530 miles

Toronto Boston New York

JeanLesageInternationalAirport

Maritime transportation

Located 400 miles rom the Atlantic

coast, the Port o Quebec City is thegateway o choice to the Great Lakesand the US Midwest. In addition tobeing a deepwater port, it is openyear-round. Thanks to its strategicgeographic location, it links NorthAmericas industrial heartland with therest o the world. Thanks to its state-o-the-art acilities, it can accommodatevessels o up to 150,000 tons. It alsohas solid bulk terminals or nickel, ore,grains and ertilizer. Nearly 27 milliontons o cargo moves through the porteach year.

Road and rail transportation

Extending more than 2,796 miles, the

regional road network is one o themost extensive in Canada, serving themetropolitan area and connecting theprovinces o Eastern, Central andWestern Canada, as well as the USborder states o New York, Vermont,New Hampshire and Maine. In 2010,more than $400 million will be investedto upgrade the network.

The regional rail network providesaccess to the entire North American

continent, including door-to-door deliveryo goods and a ull range o intermodaltransportation services.


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CamirandPhoto

28

With all the amenities o a major urban centre, Quebec City remainsin harmony with its spectacular natural environment. As a result,it is recognized as one o the greenest cities in Canada: a business-ocused city where the liestyle and air quality are unbeatable!

Unbeatablelifestyle

CamirandPhoto

CamirandPhoto


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Canadian artisticand cultural hub

Governments o all levels support thecreation, production and dissemination

o the arts throughout the region, whicheatures a stunning array o art, historyand ethnological museums, theatres,drama workshops, symphony orchestras,contemporary music ensembles, concerthalls, live perormance venues andnational and international estivals andartistic events. Quebec Citys culturalscene remains vibrant all year round so much so that people come rom allover the world to join in the celebrations!

A green water cityand heritage jewel

Quebec City eatures a harmonious blendo European and North Americancultural inuences. Founded in theearly 17th century on the banks o theSt. Lawrence River, Quebec City hasretained its Old World charm, visiblemost clearly in its architecture andortications (it is the only walled city

North o Mexico). Cited as an outstandingexample o a ortied colonial city,Quebec City was declared a UNESCOWorld Heritage Site in 1985.

The region is covered by orests, ma-king up over 55% o the land area. Inaddition to various bodies o resh water,Quebec City boasts parks, green spaces,woodlands, tree-lined avenues andother green spaces. The urban orestis one o the centrepieces o QuebecCitys green heritage.

Admired or its outstanding architectureand natural beauty, Quebec City is oneo the worldstop tourist destinations,ranked number three in the WorldsBest Awards (Travel + Leisure, 2009)and number six in the list o besttouristdestinations18 in North America(Cond Nast Traveler Magazine, 2009).

Unbeatable quality of life

Very ew North American metropolitanregions have a quality o lie comparableto that ound in the Quebec Citymetropolitan region. According toForeign Direct Investment Magazine,19Quebec City has the best quality o liein North America! Moreover, this opinionis shared by many researchers, specializedworkers and business leaders, who eld

oers rom around the world and decideto relocate to the Quebec City metro-politan region to reap the benets o aone-o-a-kind liestyle.

Quebec City is also one o the saestplaces in North America, with a crimerate o less than 5% one o the lowestin Canada. And the kids can rest easy:Quebec City is the saest Canadian cityor children.20Growing up is also easiersince children enjoy ree access to thehealthcare and public educationsystems (kindergarten to college).Moreover, ees at Quebec universitiesare among the lowest in North America.The Quebec City metropolitan regionalso stands out in terms o its highlycompetitive housing prices.

Power of attraction

In addition to being a hub or techno-logical and scientic innovation,Quebec City is a university centre,as well as one o the most promisingbusiness locations in North America.The entire region is attractinggrowing numbers o multinationalsseeking to lower their operatingcosts and secure the loyalties oa mobile workorce increasinglyattuned to environmental and otherquality-o-lie issues.

18#3 Worlds Best Awards Travel + Leisure, 2009 / #6 Best Tourist Destinations in North America Cond Nast Traveler Magazine, 2009.19#1 quality o lie in North America, Foreign Direct Investment Magazine (Di), 200720 Child and Youth Victims o Police-reported Violent Crime, 2008, Statistics Canada 2010.

2007 New Years Eve party

VilledeQu

bec


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30

Winnipeg

Quebec City

Montreal

Ottawa

Edmonton

Calgary

Toronto

Vancouver

Top 8 Canadian metropolitanreas, 2009

Sources: Canadian Real Estate Association, Quebec Federation of Real Estate Boardsand Qubec International

150

000

200

000

250

000

300

000

350

000

400

000

450

000

500

000

550

000

600

000

Average home sales price (CA$)

Montreal

Quebec City

Winnipeg

Edmonton

Ottawa

Vancouver

Calgary

Toronto


Sources: Canada Mortgage and Housing Corporation and Qubec InternationalNote: Privately initiated rental apartment structures of three units or more

500 600 700 800 900 1 000

Average monthly rent (CA$)all housing units


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Chutes de la Chaudire, Ville de Lvis


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The region's foremosteconomic development agency

32

CamirandPhoto

Price Building, Quebec City


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Qubec International

Founded in 2003, Qubec Internationalplays a key role aimed at enhancing theinternational standing o the QuebecCity metropolitan region. Our mandateinvolves promoting the regions compe-titive business environment, attractingoreign investment and qualied oreignworkers, supporting marketing initiatives,developing external markets andboosting business competitiveness andcluster development by ostering inno-vation and securing access to nancingsources.

We would be pleased to assist you withyour start-up or expansion projects.Our service oer includes:

Providing advice and inormationon the region, including local

economic conditions, inrastructure,demographic trends, key sectors,business opportunities and majorsector initiatives.

Facilitating contacts with municipal,provincial and ederal authorities,representatives o public utilitiesand legal, tax and accounting experts.

One of the most important things that any entrepreneur needs is a strongnetwork of contacts. When Picomole was considering a move to Quebec City,Qubec International played a vital role in helping us break down barriers andsee the many advantages of such a move. Since our move, the team at QubecInternational has been generous and enthusiastic in helping us get establishedand noticed in our adopted community. We commend the team at QubecInternational for their knowledge and dedication, but most of all for their

willingness to freely share their networks with us. This, more than anything,has helped us to make impressive progress since our arrival.

John Cormier, PhD, Founder and CEO, Picomole Instruments Inc.

Providing inormation on nancingsources and tax benets.

Providing up-to-date inormationon operating costs, market studiesand patents.

Drawing up lists o potentiallocations and arranging site visits.

- Providing support in identiyingpotential partners (businesses,research centres and trainingacilities).

Providing support in recruiting,training and integrating qualiedoreign workers.

Providing appropriate post-relocation

ollow-up.

Special thanks to:CHUQ - Ex Machina - Fumoir Grizzly - Muse national des beaux-arts du Qubec

Quebec City Tourism and Convention Bureau - Laval University - Ville de Lvis - Quebec City

CONTACT INFORMATION

Toll ree : 1 800 [email protected]


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Documents

Invest Quebec City in Region Web