One case in point is that of Laval University in Quebec City, an establishment founded in 1852 which got involved in the early 1980s in the repositioning in the high-technology sector of the capital, Quebec City, with a population of 600,000. Building on renowned research groups, Laval University was instrumental in the establishment of major centers such as the INO (optics research) and the creation of the first high-technology park in the province.

It used to be said that the three most important things in any business are location, location and location. Today, in the high-technology sectors, that answer might read more like work force, work force and work force, which Quebec has aplenty with seven universities and a host of colleges that churn out highly skilled graduates in every field of endeavor.

Educational establishments in Quebec have had to make major adjustments in recent years in order to respond to the needs of the business sector by creating new programs. This of course is an ongoing process. An interesting case is that of the Polytechnique, McGill and Concordia universities that offer a joint master's in aeronautics and aerospace, a master's in avionics and a doctorate in aerodynamics. Little surprise then that Montreal, according to a survey conducted by McGill University, ends up with the highest ratio of student per capita among the 30 largest cities in North America. At 4.38 university students per 100 population, Montreal edges out Boston at 4.37, and outpaces Vancouver and Toronto respectively ranked as No. 9 (2.8) and No. 10 (2.6).

Recognizing the importance and the cost of training, especially in high-tech sectors, the government has set up a number of financial assistance programs to help enterprises with employee training in these sectors.

The availability of venture capital is another crucial factor in the development of high-risk sectors such as those of the knowledge-based economy. One of the first venture capital funds, the Fonds de Solidarité des Travailleurs du Québec, was created in 1984 by Quebec's largest trade union. Public investment firms such as the Société Générale de Financement and the Caisse de Dépôt et Placement du Quebec, as well as private venture capital firms have been instrumental in many a project coming to fruition in the province. In 1997 alone, venture capital firms invested US$367 million in 247 Quebec enterprises. In fact, venture capital funds managed in Quebec total $2.7 billion and represent 48 percent of funds available in Canada.

Special funds were created to bolster the high-tech sector in the province. The Technology Development Fund was set up in 1989 with an envelope of $235 million over six years. Innovatech Grand Montreal was created in 1992 with access to $201.6 million over five years. It has lead to the creation of similar funds in other parts of the province.

Building a knowledge-based economy does not happen overnight. It takes a series of measures that make all the pieces fall in place, so to speak. Quebec has come a long way and still has much business to tend to. The Science and Technology Council, for one, is pushing for the adoption of an innovation policy, for increased funding of R&D, for greater equation between offer and demand in the labor market, and for the promotion of science and technology as a career choice for students. New measures and programs are being designed to meet the needs of this ever-changing sector. In its last budget, the government further enhanced the R&D incentive program with some initiatives such as the Cité du Multimédia and IT development centers.

A program that was first launched in 1997 to promote the growth of the multimedia sector in Quebec has lead to the creation in June 1998 of a cyberdistrict, the Cité du Multimédia in the Old Port of Montreal. The program provides tax assistance to corporations locating in these areas in the form of a refundable tax credit repre senting up to 40 percent of wages (up to a maximum of C$15,000 per job) and extending over the next nine years. Over this period, Quebec is set to hand out several hundred million dollars to support this promising sector.

Only by creating clusters of companies in designated areas can a critical mass be attained. Recognizing this, the government has gone one step further lately in introducing a new program titled "Crossroads of the New Economy" (CNE). Based on the success of the IT development centers, it will extend a similar train of fiscal measures to all regions of Quebec, where New Economy Centers, clusters of businesses carrying out eligible activities within certain areas, will be created.

Success in the new economy requires knowledge, creativity and vision. By keeping a close watch on developments in this exploding sector, Quebec has been able to stake its claim in the New Economy. With that in mind, here's a more specific look at industries and markets that are performing particularly well in high-tech endeavors throughout the province.

One cannot mention high tech in Canada without thinking of Nortel (www.nortelnetworks.com), whose share of the global optical transmission market has jumped from 30 percent in 1999 to 36.6 percent in Q1 2000 and then 43 percent in Q2 2000, according to the Dell'Oro group, a market research firm based in Redwood City, Calif. With 70,000 employees serving clients in 150 countries, Nortel is a US$21.3 billion company. It has announced investments of $660 million in manufacturing capabilities since November 1999 and no less than eight acquisitions worth more $19 billion since October 1999.

In Montreal, where Nortel employs 7,200, it is expanding into the St. Laurent TechnoPark (www.technoparc.com), a 30 million-sq.-ft. (2.8 million-sq.-m.) project next to the Dorval International Airport and the Trans-Canada Highway. It has just finished a 320,000-sq.-ft. (29,730-sq.-m.), $81 million manufacturing facility there and is completing a second administration building. There are plans for two more optical product plants.

One of Nortel's more popular products assembled in Montreal is the Optical Carrier 192 (OC192), which can handle 130,000 communications simultaneously. Each OC192 is composed of some 90 cards and runs in the $1 million range. Some of the lasers mounted on these cards are worth $20,000 alone.

"Our manufacturing process is 95 percent automated," explains technical trainer Pascal Pontinha. Optical work requires great precision since the fibers must be perfectly aligned to transmit light. "Lines 6 and 7 are dedicated to the OC192 and produce about 10,000 cards a week," adds Pontinha.