Question Period Note: The Logic Article on the Longitudinal Study of WD Clients

How would you respond to the recent article in The Logic that is critical of WD’s ability to pick winners?

• This study was commissioned to gather and analyze the long-term economic performance of funding recipients and innovation projects.

• Over a 10-year period, WD provided $777 million to support 669 projects. Not $4 billion as outlined in the article.

• Overall, it’s a positive report.

• The study found that businesses earned revenues of nearly $6.50 for every WD dollar invested.

• The study did reveal some opportunities to improve the long-term success of businesses that receive support.

• PacifiCan will continue to study the report and pursue improvements to better serve our clients.

• “The Logic” published a media article on November 23, 2021, on the first longitudinal study conducted by the department. The article’s presentation of the numbers and data from the study present a largely negative view of WD funding.

• The purpose of the longitudinal study was to gather and analyze longer-term economic performance data of WD assisted recipients (both for-profit and non-profits) before and after program funding. Findings from the study will add value to WD’s wider performance story.

Other expected outcomes of the longitudinal study include:

o Qualitative and quantitative data to assist WD to refine program parameters and help business officers in the assessment of projects.
o Guidance to help the department in developing indicators for measures of success.
o Examine patterns of default among sample clients to assist WD to reduce default rate and minimize the risk exposure on repayable contributions.
o Best practices and lessons learned to guide future longitudinal studies.

• According to the report, WINN clients outperformed against peers that did not receive WD funding. They were better able to reduce the growth of their debt, pay their employees more, and grow their revenue.

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