With layoffs at Nortel underway, the capital's top technology entrepreneur says Ottawa's tech sector needs to adapt to a changing landscape.
"The flagship is stained and it's having serious trouble," Mitel chairman Terry Matthews told a group of people attending a business breakfast Thursday morning.
"I really wish to God that it could be turned around and our society could have a good flagship."
Matthews says young people are key to revitalizing the tech market in the capital.
- EXTENDED COVERAGE: Watch part of Terry Matthew's speech
He's been creating companies by taking the best university graduates, paying them $25,000 per year and investing another $45,000 in the company. In a year or less, the students create a new product.
"Adapt, get some new grads because they are really, really good," said Matthews.
That's advice many students welcome.
"I already do work for $25,000 around the clock, so I'd be willing to. That's exactly the kind of work I'd like to be doing," said University of Ottawa student Daniel Decaire.
"We really do have to invest in new ideas and it's coming from the students because we see the problems, we deal with it," added Shameesa Nowsin, another student at the University of Ottawa.
Now, Matthews says it's time to be positive. With so many layoffs at Nortel, he says more people will be trying to capitalize on new ideas.
"In my view, I think we're into a resurgence. True, it's a bit of a downer right now, the economy is awful. I don't know of anybody that has anything good to say -- adapt," he said.
Matthews says government is part of the solution, adding it must invest in the tech sector, which means taking risk and buying Canadian technology.
While Matthews doesn't blame government for Nortel's downfall, he says the company failed to build partnerships to survive.
In the meantime, he says he's hopeful the government's stimulus program will help the industry, but he'll have to wait for the details.
With a report from CTV Ottawa's Paul Brent
