Investments in education and R&D are a trend that began some 25 years ago, reports Roquet. And it's these two factors -- pushing education and research -- in addition to creating an environment that is extremely favorable for R&D, plus the free-trade agreement, that have changed completely the face of Quebec industry.
      "We still are a large producer of natural resources, but if you look at our six main export categories, there's only one now that is natural resources, and that is aluminum," explains Roquet. "The other five are high value-added technical products like aerospace, transportation equipment, telecom equipment and information technology applications. These are the areas where we have critical mass, and they are all areas in which R&D are crucial."
      Looking at Quebec's top investments, as reported by Conway Data Inc.'s New Plants Database, proves his point (see chart). Among the top 15 investments since Jan. 1, 2000 are chip manufacturing, optical systems and pharmaceuticals.
      Since 1988, international merchandise exports have more than tripled with approximately 86 percent destined for the U.S. The province is now the seventh-largest exporter on the American market and the fifth-largest export market for the U.S. The significance of this is that Quebec's international exports reflect its diversified industrial sector, in which high value-added products account for a growing proportion of output.
      Quebec is already a leader in such high-tech industries as aerospace, biotechnology, information technology and customer contact centers (see accompanying stories), but its emphasis on R&D has allowed the province to move forward into cutting-edge technologies. One of those up-and-coming industries is focused on the areas of optics and photonics.