By: Stephen Wu

GLOBE-Net, October 3, 2012-Gaining access to global markets is a hot issue for developers and suppliers of clean technologies.

A recent study commissioned by the government of Germany estimates the global market for clean technologies at $2.8 trillion USD. But despite the size of this growing market, a key question remains as to how best can clean technology clusters such as exists in British Columbia tap into this lucrative but highly competitive business environment.

GLOBE Advisors' soon to be released research on the BC Clean Economy found that many successful BC clean technology companies are seeking export opportunities abroad. And while such companies want to penetrate the Asia-Pacific market in particular, cultural, business and language issues pose real problems for these companies, many of which are small to medium sized enterprises.

This was one of the topics discussed at a recent Greentech Exchange Forum where a panel of industry leaders including Frank Came, Senior Advisor with the GLOBE Group discussed what can be done to accelerate B.C.'s clean technology exports. (Other panel members included:  Bruce Flexman, CEO of AdvantageBC, Frank Pho - Business Development Bank of Canada, Elmer Sum - GreenTech Exchange & Global Cleantech Cluster Association, and Winnie Sun - Monte Jade Science & Technology Association.)

The important factors required to increase high exports, he noted, include facilitating easy access to markets; providing sufficient investment capital to develop and commercialize technologies; having support services on the ground in new market areas; and having high talent people skilled in negotiating business deals in foreign countries.

These factors coincide with a recent online discussion by consulting firm McKinsey and Company experts on tapping into business opportunities in foreign markets. They indicated that in order to tap into these markets, there is a strong need for potential exporters to:

• Know where to complete;
• Allocate their limited marketing resources wisely;
• Maintain control over the complex supply chains to their chosen markets;
• Build brands that inspire trust; and
• Develop local marketing talent.

While market access and securing adequate capital resources are critical issues generally, finding the right talent and export skills is one of the critical resources many companies lack. This is due partly to the fact that many clean technology companies are small in size, and the need to be skilled in non-technical aspects of the business often proves challenging.

(The need to develop well-rounded employees capable of exploiting export opportunities was also the topic of a recent GLOBE-Net article. See: Canadian Businesses that trade internationally face skills shortages.) 

Also discussed during his presentation was the economic and job related implications of the current trade deficit in clean technologies that exists nationally and at the provincial level.  For example, in 2010, the net loss of full-time equivalent jobs in Canada's clean energy sector due to our trade deficit as calculated in a 2011 report by the National Roundtable on the Environment and the Economy to be in excess of 20,000. (See Figure 1).

As such, he suggested that where there is a clear domestic demand for products and technologies that are being supplied by firms in other countries, would-be Canadian exporters might first determine whether these products could be manufactured locally at a profit.

He cautioned against creating a protectionist trade policies, stating simply that one of the best export strategies might involve having a much closer look at substitution opportunities at home.

Firms that develop a solid domestic market base are generally much better equipped to then tackle the highly competitive clean teachnology market abroad.

For more information on GLOBE Advisors and its current research on clean economy opportunities, visit www.globeadvisors.ca.

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The GreenTech Exchange is an industry forum providing networking events for accelerating clean technology innovation and the deployment of clean energy solutions in a regional Cleantech cluster. Itsgoal is to connectinvestors, technology professionals, government officials and non-governmental organizations with entrepreneurs, emerging companies and commercial enterprises in order to empower the Cleantech ecosystem.