Backgrounder
Comprehensive Regional Diversification Strategy

Newfoundland and Labrador is a province rich in natural resources with a versatile and hard-working labour force. The provincial economy, once based on fishing, forestry and mining, traditionally supported a robust rural population. While resource-based industries are still very much part of our economy, we need to focus as well on diversification and innovation in order to compete globally. What the province needs is a co-ordinated, integrated economic strategy that allows all regions to enjoy economic prosperity.

Guiding Principles for Regional Diversification

In consultation with the people of Newfoundland and Labrador, the provincial government has developed guiding principles for regional development.

Economic development must:

• emphasize regional industrial development

• link industrial development to small business creation

• recognize the linkages between social and economic planning

• recognize innovation and technology as the cornerstones for industrial development

• be understood in the context of strategies that will create new business operations and long term sustainable employment.
   

Sector Diversification

Each region of the province has particular sector strengths. Some of the sectors identified for further development throughout the province include:

• Biotechnology

• Forestry

• Aerospace

• Information Technology

• Agrifoods and Fisheries

• Alternative Energy Sources

• Communications

• Marine and Ocean Technology

• Tourism
   

Supports to the Diversification Strategy

The successful implementation of any strategy is dependent upon a variety of supports. There are several areas that require targeted supports to ensure that the benefits of the diversification strategy can be fully realized in all regions. These include the following:

• Labour force development will be supported through the Labour Market Development Agreement and Provincial Employment supports and services.
   

• Research and development required to develop the opportunities identified in the diversification strategy will be supported through the Innovation Strategy and the Industrial Research and Innovation Fund.
   

• Targeted education and training required in specific sectors will be supported through the Innovation Strategy and the Marine Technology Development Strategy.
   

• Infrastructure development required for the implementation of the diversification strategy will be supported through the Regional/ Sectorial Diversification Fund and the Broadband Initiative.
   

• Investment attraction will be encouraged through the Innovation Strategy, the Venture Capital Fund and the Nearshore Atlantic Initiative.
   

• SME growth and expansion will be supported through several mechanisms:
   

  • Where appropriate, the Strategic Enterprise Development Fund and the Venture Capital Fund will provide SMEs with financial resources.

  • The Business, Retention and Expansion Program will assist SMEs with the removal of barriers to growth and expansion.

  • The development and establishment of Business Networks will facilitate partnership opportunities within sectors.

  • Trade missions will assist with the development of export market opportunities.

  • The supplier development program will match buyers with potential procurement opportunities.

Developing and implementing a Diversification Strategy

Together with community stakeholders, including the regional economic development boards, government will lead the development and implementation of customized, regional diversification strategies. Short, medium and long-term initiatives will be continually identified for each region. Regional diversification strategies will be coordinated with and mutually support line department sector strategies and plans. Federal and municipal government policies and strategies will also be factored into regional diversification strategies. Major stakeholders, including all levels of government and regional economic development agencies, must play a key role in constantly identifying opportunities. The Economic Initiatives Committee of Cabinet will play a leadership role in this new approach to regional diversification.