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Canada has enormous potential… which was just one of the perspectives shared through a variety of conversations at the Alberta Securities Commission’s (ASC) annual ASC Connect conference, held in Calgary late last year.
Across a series of panels and keynotes, one message stood out: bold leadership paired with innovation — technological, financial and regulatory — is what will encourage Canada’s next chapter of resilience and opportunity.
The ASC’s annual conference brings together business leaders, industry experts, academics and entrepreneurs to discuss the topics influencing Alberta’s capital market. Market participants from Alberta and beyond gathered to hear insightful conversations centred around the theme of “Fostering a thriving Alberta market.”
Changing mindset
In a fireside chat with Stan Magidson, Chair and CEO of the ASC, Peter Tertzakian, Founder and President at Studio. Energy offered a bracing but unifying vision for Canada’s renewal, emphasizing the need for creative thinking and proactive leadership.
He urged Canada to move beyond a “reality TV show” mentality, where leaders expect problems to resolve themselves.
“We need to think much more differently, more creatively, and we need to act with more confidence,” Tertzakian said.
By embracing technological, financial and regulatory innovation, Canada can turn its unique advantages into global leadership. Alberta’s entrepreneurial, collaborative and risk-tolerant culture offers a blueprint for the rest of the country, showcasing how individual provinces could lead a return to productivity and growth – all within a unified national framework.
Harnessing innovation across the entire economy
The potential impacts of technological, financial and regulatory innovation emerged as central themes across the day’s panels, offering a multi-faceted roadmap for addressing Canada’s economic challenges.
Artificial intelligence (AI) stood out as a transformative force with potential far beyond automating tasks. A panel discussion on AI in capital markets highlighted its capacity to revolutionize financial services, boost productivity, and foster economic growth.
Chad Langager, CEO of AlphaLayer, a company that develops AI solutions for the investment management industry, emphasized the potential of AI to analyze financial markets, enhance decision-making and automate repetitive tasks.
Dr. Martin Petrin, the Dancap Private Equity Chair in Corporate Governance at Western University, emphasized that existing governance frameworks can be expanded to include AI, while also stressing the need for unique measures like ethics advisory committees and stress testing to ensure robust oversight. “AI is only as good as the data that it’s being fed… If the data is biased, that means outcomes are biased,” he warned.
Alberta’s growing role as a major innovation hub in clean tech, health tech and fintech demonstrates how the province is building global leadership in sustainability and advanced industries.
As Calgary and other Canadian cities look to post-secondary institutions for economic growth opportunities, Dr. Lawrence Korngut, Professor and Director of Innovation and Commercialization at the University of Calgary’s Hotchkiss Brain Institute, emphasized the ethical imperative of commercializing groundbreaking research — “It isn’t good enough to discover something. If it isn’t put into practice, then it’s almost like an ethical problem.”
Panelists emphasized that Canada’s success depends on scaling innovation across industries. Increasing AI adoption and addressing gaps in productivity, such as automation and decision-making improvements, will help the country stay competitive globally
“Alberta’s energy expertise and entrepreneurial spirit position us to drive Canada’s next wave of innovation. I’m seeing how technology and collaboration are transforming traditional industries. By embracing bold innovation while leveraging our established strengths, Alberta can lead in developing sustainable energy solutions that address global challenges and build our economy at home,” said Natasha Kostenuk, Co-Founder and CEO at Ayrton Energy.
Terry Rock, President and CEO of Platform Calgary, championed Alberta’s entrepreneurial spirit, emphasizing that long-time energy powerhouse Calgary could become a global leader in sustainable energy solutions.
“Calgary could be a city where the sustainable energy challenges are solved,” Rock said. He cited the collaborative and entrepreneurial spirit that defines Alberta’s innovation ecosystem, underscoring its ability to address global challenges.
Unlocking Canada’s productivity potential
Dr. Trevor Tombe’s keynote address opened with a sobering backdrop, highlighting Canada’s productivity crisis, and concluded with actionable solutions to address the issue.
“We’ve had three consecutive years of negative productivity growth,” said Dr. Tombe, Director of Fiscal and Economic Policy at the University of Calgary’s School of Public Policy. This stagnation has dragged Canada’s GDP per capita back to 2016 levels, creating a widening productivity gap with the United States — now at 50 per cent per capita — a disparity not seen since the early 20th century.
Dr. Tombe explained that Alberta’s GDP per capita mirrors Texas, while Atlantic Canada’s output lags behind every U.S. state. Productivity in key sectors like construction, manufacturing, and transportation has also declined sharply since 2015.
He also pointed to persistently low productivity as a cause of affordability challenges, with inflation-adjusted disposable incomes growing at their slowest pace since the Great Depression, dubbing this period “The Great Canadian Productivity Slump.”
To address these issues, Tombe suggested harmonizing internal trade regulations, which would potentially boost GDP by seven per cent, and advocated for a national productivity commission to ensure economic performance remains central to policymaking.
Optimal capital formation: balancing public and private markets
The panel on public and private capital markets revealed a clear shift, as private capital outpaces public markets as the dominant funding source, which has implications for Canada’s ability to scale innovative companies.
Hans Knapp, Partner, Co-Founder and General Counsel at venture capital firm Yaletown Partners, highlighted that private equity investments in North America have grown from $78 billion in 2000 to more than $640 billion today, with deal counts rising from 3,000 to more than 6,500 annually.
He pointed out that “private markets allow for more control, confidentiality and fewer quarterly pressures.”
However, this trend has drawbacks.
The drawback, as indicated by Bryce Tingle, the N. Murray Edwards Chair in Business Law at the University of Calgary, is that Canada risks losing its ability to scale businesses.
“Historically, public markets have been where companies get scaled, and without that, we risk exporting our most innovative businesses,” he said.
To scale Canadian innovation, panelists highlighted the need for a balanced approach between private and public markets. While private capital offers flexibility, strengthening public markets through reduced regulatory barriers and improved early-stage funding is key to long-term economic growth.
Public markets don’t just provide capital, but also visibility, credibility, and the foundation for long-term growth. However, lack of early-stage support creates barriers for startups to transition from private to public markets.
Knapp tied Alberta’s recent success in attracting private capital to population growth and innovation, pointing to opportunities to reinvigorate the public market ecosystem. “Investment in the tech sector typically mirrors population growth,” he explained, suggesting that Alberta’s entrepreneurial culture could serve as a model for Canada.
The day’s discussions underscored a shared sense of urgency but also highlighted the tremendous opportunities ahead.
By embracing innovation, fostering collaboration, and addressing challenges head-on, Canada has the potential to reclaim its economic leadership on the global stage. And the insights from ASC Connect speakers serve as a reminder that bold action today can secure a brighter, more resilient future for tomorrow.
For more information or to replay panel conversations from ASC Connect, visit asc.ca/en/asc-connect-2024
