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The Epic History of the Tech Sector on Cape Breton Island!

With the recent resurgence of the technology startup community in Cape Breton, I thought it might be useful to take a look back at the history of the tech sector here.  I had a pretty good seat from which to watch it unfold over the past 20 years, so I figured I may as well be the person to do it.  

I first asked some friends on Facebook if anyone would be interested in reading about the history of the local tech sector.  A few said they would, and Steven Rolls commented, "Better question … do you think anyone would believe it?!"  Boy, is he right about that. I suspect you may not believe some of what you read here, and that's ok. 

I'm going to give you a first-hand account of what really happened in public and behind the scenes.  I name names ... over 100 of them ... and their roles in doing good things or bad things for Cape Breton.

The story is long but easy to read on Google Docs by following this link:  Read the Epic History!

Post your comments below.  

  • Do you believe the stories?  
  • Do you have some history to add?  
  • Did I miss something or someone?

 

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https://capebreton.lokol.me/the-epic-history-of-the-tech-sector-on-cape-breton-island
A first-hand account of what really happened in public and behind the scenes. I name names ... over 100 of them ... and their roles in doing good or bad.
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madeline yakimchuk Follow Me
Hey, very impressive! I especially like the number of female names that pop up in some eras. You did miss me though! Special effects made right here! https://www.youtube.com/user/gryphonpro
Joanie Cunningham Follow Me
Thanks for posting your comment .. enjoyed the content!
Mathew Georghiou My Post Follow Me
Hi Madeline ... thanks for sharing. My memory is definitely missing some people and events ... remind me of the work you were doing back then and I would love to add you to the story.
madeline yakimchuk Follow Me
oops, I posted this in the wrong place... will try to move it.. I came back to Cape Breton during what you are calling The Lonely Years (2003 - 2008). I arrived in 2005, looking for production houses to partner with on joint initiatives with Chile, where I had come from. I talked to a few of the characters in your history from then, and now I understand more of why I couldn't get much going. I have continued producing since then, locally, in what you are calling The Renaissance (2009 and later). My work is concentrated in Mi'kmaw themes and stories, so I have been lucky enough to know and/or work with people like Kevin Burton and Kathy MacIntyre, but mainstream Cape Breton might not know my work. Do you remember Donovan Productions... ? I was one of three companies, including them, who had a trade mission to Chile funded by the NS government. The third was an independent Mi'kmaw man from Eskasoni. I was just recently back, didn't know anything about who was who, so nothing came of it. Once I realized that things were lonely here at that moment I applied for a little bit of startup funding through a program Owen Fitzgereld ran out of the Y in Glace Bay at that time, but he decided that starting a video production house was not viable... I gather he had personal experience in that, but I didn't know it at the time. In any event, ten years later I am still paying the bills, although I don't know where I would be if I had gotten some help. I do appreciate the history you have provided. It sure does help explain things.
Mathew Georghiou My Post Follow Me
Thanks .... I have added a reference on page 11.
Richard Lorway Follow Me
The expression "my life flashed before my eyes" comes to mind. Yes, NEXTmedia is still in operation in Toronto and Banff. We worked so hard to build it here. A huge opportunity lost and my biggest regret from those years.
Joe Ward Follow Me
Now here is a masterpiece of candor, insight, and ballsiness those of us who want to be a part of the transparency era can certainly appreciate! And something only possible from a veteran in this local ecosystem. Really appreciate the huge effort you put into giving us a timeline of progression, key players, key successes, and insights into the messy political aspects of funding and the business of bureaucratic payrolls (i.e. book enough meetings to keep my job, results and ROI be damned). For those of us less connected, it's validating to know that some of the political sketchiness that appeared as blips on the radar over the years wasn't just a few ghosts. And there are still some big blips even to this day that don't go unnoticed, but it's best to keep those filed away in the dark, securely encrypted, password protected vault of Dropbox. :P In this time of Social Media dominance, now there is a vastly greater platform for various groups to get their message out, create some alignment/cohesiveness/synergy amongst them, and also to keep a watchful eye. Likewise, this new startup community has the advantage of better technology components to build on top of, so let's hope that everyone can keep up the hustle on par with the old (and continuing) guard - who had to do so against more adverse conditions. I get concerned sometimes when there appears to be more economic dev groups forming than startups, and more money put into those groups. IMO, less speakers, more doers needed. ;)
Joanie Cunningham Follow Me
Mathew and I lived through many ups and downs running a tech business in CB. Reading this article brought back many good memories (Baddeck New Media Festival and the MediaSpark crew in togas, or the year we all went as Men in Black). But also reminded me of some things that I had forgotten about and still can't believe happened... argh.
Eric Lortie Follow Me
Very interesting read. Thanks a bunch of sharing it. It's nice to see it all put to paper this way and to have some insight about recent historical events, which have undeniably shaped the current experiences of everyone working in the modern tech sector, from someone who was a big part of it all. I totally mirror Joe's view below that transparency and having "more doers and less speakers" is the way to go, and I personally feel that a lot of the fairly negative historical issues mentioned in this article could have been avoided, or their negative impact could have been mitigated, had those elements been present. Regarding the foreword included at the end of the article, I don't personally view the fact that it's still relevant as being indicative of some sort of failing. Had things turned around in the past decade to a significant extent, had tech become the dominant industry in Cape Breton and had all our hopes and dreams regarding a bright, economically prosperous future come to fruition: many of the views expressed there would still hold true. It's not about doing the best. It's about doing the best you can... and you can always do better than you have. Progress has been made, and is being made. Could more have been made? That's irrelevant. All we can do is try to learn, work to adapt and continue trying to do the best we can.
Joe Ward Follow Me
Eric said: "It's not about doing the best. It's about doing the best you can... and you can always do better than you have." This reminded me of the Matthew McConaughey, Oscar speech. Perhaps he was onto something regarding iterative personal development. (Though we might want to do an audit a little quicker than every 10 years) :P https://youtu.be/QkLmuKL7bBM
Joe Ward Follow Me
Nix that link. They were quick on the copyright. Ha ha: https://youtu.be/wD2cVhC-63I?t=3m26s
Mathew Georghiou My Post Follow Me
Thanks for the feedback so far. What worries me today is that I do see history repeating itself. It is happening in two ways: First, certain community leaders are still focusing their attention exclusively on what they think may be the big win. This diverts focus, political captial, and resources away from local entrepreneurship. Second, despite the return of the buzz that we are seeing and feeling about the tech sector, many of the same fundamental barriers to success still exist. And, if we continue to just feel good about the buzz, we won't see the hangover coming. And, trust me, it's coming. Having feel-good meetings and events and discussions does not solve the problems. Only concerted action does. And, in Cape Breton, history has repeatedly shown that people have to push hard for the big problems to be solved. I don't see us pushing hard.
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Shauna Slaven Follow Me
Wow...great read, and definitely brought me back! Chatsubo was acquired by Knowledge House. They maintained the web hosting business from Chatsubo (they hosted Rita MacNeil's website, Celtic Colours, Owen Fitzgerald's, etc.). My husband was at Chatsubo, and then moved to Halifax to work with Knowledge House. He was a casualty when KHI went down, but was lucky enough to get a job with CrossOff. When KHI went under, the web server was saved and Mike Slaven and Harry Doyle founded locals.ca and maintained most of the same clients. Harry created the cblocals.com website, which was a portal, similar to this for the underground music and skate scene in Cape Breton. He expanded that framework to allow for other communities to build their own 'locals' communities (Halifax, Moncton, PEI, etc.) using the same engine/framework. I did work terms with AG Research - it was founded by Eric Whyte (and possibly John MacKinnon). We moved back to Sydney in 2007 to work at AG during those Lonely Years. With a young family, and not much going on, we left CB for better job security in 2012. The Silicon Island days inspired me to take Computer Science. There was so much excitement and optimism.
Mathew Georghiou My Post Follow Me
Hey Shauna ... thanks for sharing ... I have made the corrections and added the locals.ca info to page 17 with credit to you!
Arnold Spence Follow Me
Very nice work. There is a lot of great information in there that I was only vaguely aware of and often wondered about. I was part of The VR Lab with Murray Heggie and helped found Trakonic (initially GridZero/Eye.Site, then PacketWare, then Trakonic) along with Will Hickie. Exciting times.
Mathew Georghiou My Post Follow Me
Hey Arnold ... of course! This info has now been updated, thanks!
Steven Rolls Follow Me
I went to see Jurasic World today and was reminded of one missing piece when they showed a preview for the latest FIFA game. Back in the day VMP housed an early model motion capture machine and were contracted to do the motion capture and animation for one of EA Sports original FIFA Soccer games.
Mathew Georghiou My Post Follow Me
What happened with that contact?
Gayle Bird Follow Me
Oh yes the mocap thing! I remember strapping my brother into that sucker and using him to animate my projects ha :D
Nick Phillips Follow Me
I've been in Cape Breton for 6 years now and have been wondering about the tech landscape. Thanks for sharing this Mathew, it helps me understand a lot more where we are today. I've got a good tech background, and rode the tech bubble with Nortel through from 98-03. I'd love to have chance to sit and learn more from people if the timings right.
Mathew Georghiou My Post Follow Me
Thanks Nick. This coming week, goCapeBreton.com will also be publishing a list of the more well-known tech companies that are currently in operation. It will be great to see a synopsis of companies in one document.
Martin MacLellan Follow Me
Matt: As one of the the “three musketeers”, since I’ve long forgotten the story of the “three musketeers” I’m not so sure that is complimentary. However, we could have been labeled the ; “three stooges” and I guess curly would befall to me. In any event you’ve done an excellent job in capturing the essence of that period of Cape Breton History. I’m not so sure that “Epic” quite captures the period but I’ll leave that up to others to judge. Your recall and coverage of the period far exceeds what I can remember and your capture of the tension between bureaucrats and the start-ups does strike a familiar cord as it did during that time. My time at ECBC was short lived but under the tutelage of Mike Kelly and Pat Bates much interesting work was taking place. I often look back at that period with a certain sadness, because collectively, we had a chance to really make things happen. With Pat’s early departure from ECBC to care for his family, much of the energy was sucked out of the place by the replacement team. And from your story, this has continued unabated for a good period of time. I do sense your on-going angst with bureaucrats and their roll in how the upstarts played in those days and in later years. I can only speak for the time I worked at ECBC and without question, the team in place, including Pat Bates, Francis Mullins, Jim Addicott, Cecil Smith, Mike Kelly, the Marketing gang and in general, all the staff I knew and worked with had a common vision. The Board of Directors also backed the initiatives, that more or less arose from the working staff and in corporation with the clients; that being entrepreneurs like yourself and the others who came for financial support. It is unfortunate that the good work that was started back then by many faltered. to be continued ...
Mathew Georghiou My Post Follow Me
Hey Martin ... thanks for your contribution here (and back then too)! Yes, the Three Musketeers" is definitely a positive reference to a small group of people working together to do the right thing against the odds. The 3-Stooges period came after you left :-)
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Mathew Georghiou My Post Follow Me
David, those are some great tidbits of history that not many people remember.
Christian Murphy Follow Me
The Heavy Water Plant with a connection to those Cando Reactors! Wow.
Martin MacLellan Follow Me
On another point, after leaving ECBC in ’95, I spent time with Erick & Jean White, at Atlantic Geomatics and subsequently spent several years working with Harry Woodman who was general manger of Seaside Cable. It was at that time that Will Hickie & Murray Heggie came to visit and showcase what was then the promise of a video streaming technology coupled with image detection to service the security market. It’s important to note that a good deal of private sector money for Packetware came from the late Irving Schwartz. A real gentleman and a huge entrepreneurial fan. He not only opened his wallet but brought significant influence to the table on this project and a good number of others I might ad. This project stood on its own merit and ECBC supported the project through its various programs. I understand, after Heggie and the other company leaders moved to Halifax, Chubb Canada awarded a multi-million dollar contract. Although it was early stage technology, my sense is there wasn’t sufficient back office support to sustain the client base and the business case faltered. I need close out for now but before doing so I need to give a shout out to Dave Martell of the National Research Council. What a wonderful man who walked the talk in funding a good number of projects s that were presented to him.
Mathew Georghiou My Post Follow Me
Great to see new stories and more background info being shared about these stories!
Christian Murphy Follow Me
Hello again Matt, one thing that is missing is New Dawn and the role they are playing could be added. I think there are some orgs that are proving successful in spite of the challenges. If I recall they helped turn around a few companies, Cape Breton Rope plants for example. Sorry, these things keep popping into my head with each read.
Mathew Georghiou My Post Follow Me
Yes, New Dawn has been playing a financing role for the tech sector through their CEDIF this past few years. But in the time period of my history document, New Dawn was focused primarily on its own businesses, which were not in the tech sector. Same with the Rope Plant - exporter yes, but not so much tech sector.
Christian Murphy Follow Me
I was under the impression they invested in other organizations early on. I stand corrected!
Gayle Bird Follow Me
Chris! Hi stranger!!!
Christian Murphy Follow Me
And getting stranger by the minute! How are things Gail? Great to see you're still on the move!
Gayle Bird Follow Me
(some things never change) You too!
Gayle Bird Follow Me
What a fun blast from the past! I worked for Paul Patterson at the MOTC (TAG! I vaguely recall possibly making the website for TAG?! - I also worked on the first websites for the Fortress and the Library) and later for Weldon Bona way back in the day, and also for Ken & Donnie @ Silicon Island / Knowledgehouse... Oh man Knowledgehouse was supposed to make us all rich, remember?! ... I'm still at Centre for Distance Education (ps you spelled it wrong ;) Thanks for this!
Mathew Georghiou My Post Follow Me
Hi Gayle ... thanks for sharing. I remembered missing you in the story the other day but I couldn't remember where you were working at the time. I have now added you to Page 11. And I fixed "Centre" thanks!
Gayle Bird Follow Me
Ha, groovy :)
Iain K. MacLeod Follow Me
“While working as a Management Adviser at the United Nations in New York (1992-5) he was offered a post as Associate Chair in the Management of Technological Change at the University College of Cape Breton. While on Cape Breton Island he founded the Centre for Community and Enterprise Networking (C/CEN) as a community based research laboratory (what has now come to be known as a Living Lab) exploring possible applications of Information and Communications Technologies to support social change in what was then one of Canada's most economically disadvantaged regions. C/CEN, established in 1996, was a pioneer in among other areas online conference management (and did the first online conference with simultaneous translation using IRC and court translators to provide text translation in French simultaneous to the direct meeting being transcribed in English). The Centre also undertook the first NetCorps placement (in Angola) as well as providing on-line support to the local Cape Breton music industry.” https://en.wikipedia.org/wiki/Michael_Gurstein
Iain K. MacLeod Follow Me
I graduated from Sydney Academy in 1994 and attended UCCB, but while I was away at the University of Prince Edward Island in 1996, I was brought back by Michael Gurstein within the C/CEN (located above Island Greek Donair at one point) after being active on the Cape Breton Music mailing list hosted by Chatsubo. The job I was given was tied to the Industry Canada CAP site projects, although most of those were about getting internet access to specific locations, my project was focused on trying to bring together musicians and industry stake-holders with a non-profit website called Cape Breton Music On-line. I worked alongside musician Ralph Dillon under the guidance of Father Greg MacLeod at New Dawn and songwriter Leon Dubinsky. I remember presenting the idea at a TAG meeting, and ended up getting hired away to do other things with Elections Canada and Celtic Colours because of that work. All the while, writing for What's Goin On and questioning the region's commitment to youth and technology. Just peeked at my file and we made the cover of the Cape Breton Post on May 8th, 1999 with a small launch at Silicon Island with senator Peggy Butts and Economic Development and Tourism Minister Manning MacDonald ceremoniously clicking a mouse. Ha.
Mathew Georghiou My Post Follow Me
Hey Iain, Thanks for sharing. Sounds like you may have worked a bit with my wife Joanie Cunningham at C/CEN. It never occurred to me that this history would be in Wikipedia. I will add it to the story now. Thanks again.
Joe Ward Follow Me
Mathew - I worked alongside the Louisbourg Digitization Project that Joanie managed (if I recall correctly). She had a team at the Louisbourg cap site? I was the WireNS student rep at the same site. I assisted her team with getting some of the Fortress Louisbourg Genealogy records online (with a little batch conversion process I whipped up). ;)
Mathew Georghiou My Post Follow Me
Small world. Yes, Joanie was doing the Louisbourg website work. She now does this joanie.ca and this weirdbeard.org
Iain K. MacLeod Follow Me
When I was reading your article (great job, btw…I realize I commented without saying that and the internet is filled with enough snark!), I opened a tab trying to locate the name of a paper or book that Michael had published (I recall signing a release when I moved to Halifax around 1999) and came across that wiki page and thought it might be relevant to mention.
jim addicott Follow Me
Well done Matt. It sure brings back a lot of good memories. There is one other person I think played a big role in the TAG and the activities at CBU and that was the late Dr Bob Morgan. He was instrumental in getting the MOU going with ECBC and even won a Conference Board of Canada award for government / University cooperation. He also helped establish many of the Tech Labs and Centres at CBU as well getting the Chairs in the Management of Technology Change established and renewed.. Although primarily a historian, Bob was a great friend of the tech sector and a regular participant of the post-TAG meetings at the pub, where the real work got done! Thanks again Matt
Mathew Georghiou My Post Follow Me
Hi Jim ... thanks for reading and sending your thoughts. You are right about Bob! He even attended many of the social events. I will be sure to add his info to the story soon. I'm glad to see that you and Martin M. thought the story was reasonable as you guys were certainly in the know. Some of it seems so unbelievable at times, it makes me wonder if people reading it may think I was delusional :-) And, I even held back on some of the doozies!
Martin MacLellan Follow Me
Thanks Jim for remembering Bob Morgan and the important role he played in the many facets of the Tech sector. He was a prince of a man; intelligent, funny and liked by all. He was and is still missed.
Mathew Georghiou My Post Follow Me
Coincidentally, Bob's home off Kings Road is now owned by a MediaSpark team member.
Joe Ward Follow Me
Spark Cape Breton, Round III winners announced: https://innovacorp.ca/news/spark-cape-breton-winners-named-2015
Dan Yakimchuk Follow Me
What is micro and soft and desired by nerds? Those in the IT sector with an interest in certifications should check out the Dr. StrangeJob blog below for the answer. Also, your epic history did not mention the CBU BTI degree. As for the relevance of BTI, I would note that one of its many prosperous alumni is Gavin Uhma of UIT. https://drstrangejob.wordpress.com/2015/05/06/what-is-micro-and-soft-and-desired-by-nerds/
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Lawrence Clarke Follow Me
Excellent article Matthew. I really enjoyed this read. Brought back many memories of watching this industry unfold from a local media standpoint. I have had to the pleasure of working sporadically, and sometimes collaborating on an ongoing basis, with many of the people mentioned in your piece. Thank you for taking the time to write this. Lawrence Clarke
Mathew Georghiou My Post Follow Me
Thanks Lawrence.
Mary Campbell Follow Me
Fantastic! Thanks for this!
Ken Heaton Follow Me
Hello Mathew, I realize this article is 7 months old now but I thought I should mention another Tech Industry that existed in Cape Breton for about 7 years which employed upwards of several hundred and perhaps over a thousand workers for a period of time. General Instruments. "General Instruments established a factory in Sydney in 1967 and stayed until 1974. There was controversy when it came, and controversy when it went. By the end, there were close to 8000 badge numbers, representing around 5000 workers, through the General Instruments plant." I do not have any personal knowledge of this industry but I can provide a reference to a two part Cape Breton's Magazine" article here: http://capebretonsmagazine.com/modules/publisher/item.php?itemid=2795 http://capebretonsmagazine.com/modules/publisher/item.php?itemid=2826 The story behind this industry sounds familiar once you start reading some of the accounts: "(Why did they come to Cape Breton?) Well they came--just as now, there is an incentive, with a tax rebate--they came for that purpose. They were desirous of setting up a plant. And maybe they had so much production to make. And if they could make it here, they would get a real royalty back, because of the fact of the tax rebate." http://capebretonsmagazine.com/modules/publisher/item.php?itemid=2800
Mathew Georghiou My Post Follow Me
Ken, this is really great, thanks for sharing. I will add references to the full article.
Ken Heaton Follow Me
Rhand Electronics - Anyone know anything about this one? A bit of a flash in the pan, it looks like they operated for only about 10 months. Rhand built the Building that is now CBRM Police Service, East Division in Glace Bay. DEVCO eventually moved into the building themselves and used it as their headquarters (I think) until they moved to the General Mining Building. Rhand Electronics BUSINESS TYPE: Electronics PRODUCT(S): electronic components REMARKS: An assembly plant for electronic components. ADDRESS: Glace Bay, Cape Breton, NS, Canada Incorporated 1969-03-14 Publication: The Ottawa Journal Location: Ottawa, Canada Issue Date: Thursday, December 10, 1970 Page: Page 1 NS Firm Closes GLACE BAY, NS (CP) About 40 employees of Rhand Electronics Ltd. were told one hour before closing time Wednesday that the firm was going out of business "effective immediately," a union spokesman said. Rhand, set up here with financial aid from Cape Breton Development Corp. (Devco), started production of high-fidelity amplifiers 10 months ago. A company spokesman told the employees that the plant was closing because Devco withdrew its financial assistance. That's all I could find online.
Mathew Georghiou My Post Follow Me
Hey Ken... just added the GI info to my article on Page 2 ... thanks again for sharing!
Ken Heaton Follow Me
Looks great! Thanks for the update. I especially like this part at the end: "There were several other examples similar to the above where businesses were established in Cape Breton for the financial incentives, only to leave or shut down when the funds ran out." That does seem to have happened over and over but as it hasn't advanced Cape Breton or Cape Bretoners in any lasting way it would just distract from the story at hand in spelling them all out.
Mathew Georghiou My Post Follow Me
Sad but true. By my estimates, probably $1 billion spent and little to show for it beyond temporary benefit.
Lynn Hussey Follow Me
Whew..Long but interesting for sure..I would've liked to see more females linked to it though..we 'gotta' get a move on! Tks. for this.
Joe Ward Follow Me
Orenda has some very strong female leaders in the tech space. And UIT Startups batch #1 and #2 has a bunch of great women involved - as well as the new Accelerate incubator. Kim Desveaux is also a local superstar. :)
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Robert Zwarun Follow Me
Hi Mathew. Hope you remembered me from my brief work term there in 2001. Even went by a pseudonym (Robert Phillips) at the time, just to try something different! Anyhow, I saw that Serca Technologies and Neil Rideout was mentioned. You said you didn't know much of him, but I surely did. Even though it was only six months, it was enough to base a good description of who he was. I went to work for Serca in January 2003. At the time, EmployAbility helped land that job for me, and I thanked them for that. What nobody knew was how badly run the business was. It was based out of a now-demolished building on Plummer Avenue in New Waterford. Neil had all of these schemes that he thought would make him a player in the tech game here. Serca, at that time, was known for a browser called the P/See Voyager, which I believe was based off of the Netscape Navigator browser. Basically everything Serca released was under the P/See banner. Neil was more overly eccentric than most, and I can't really say it any better than that. When I first met him, he had all of these wild stories about his life, including one I remember vividly about him saying he was a defenseman for the New Jersey Devils. He didn't realize that I checked up on it to verify that, and there was no mention of him anywhere of him doing what he said he did. In my time there, the main task he had me do was to construct an online auction website similar to eBay, which was never completed, despite my best efforts to try. What really sealed Serca's fate was that Neil sold the company to a company called Medix, which dealt with medical technologies. I believe this happened in April or May of 2003. Neil was clearly giddy about pulling that sale off, but at the same time, it didn't benefit his employees one single bit.
Robert Zwarun Follow Me
Sorry about that. Must have hit an empirical limit here! :P Anyhow, continuing on, we moved our operations to the building on Vulcan Avenue, where we were for a few months before all of the employees began to be laid off in droves. Eventually, the company folded, and I'm sure the folks at Medix were irate over being sold a company that went out of business in a very short time. I would have liked to have seen the company not only survive, but be better at what it tried to do. I'm sure all of the Cape Breton technology sector would agree on that. Sadly, from what I experienced there, it just wasn't to be.
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