Canada’s technology industry is a significant economic booster, and it continues to grow, excelling better than other sectors. Technology-based companies have become a vital tool for improving the gross domestic product (GDP) due to the increased global shift to the digital economy.
Through technology, the sector is providing high paying jobs through the development and research of advanced technology. The tech sector in Canada is estimated to be worth 20 billion in 2020 alone.
Four Canadian cities appear in North America’s top tech markets, with Toronto in fourth place. Toronto has added 66,900 jobs in the tech sector in 5 years, coming in second in North America in the job provision category. In 2019, Canada’s Communication and Information technology sector amassed a total of 210 billion dollars in revenue.
Innovation development in Canada
In the entire Canadian economy, the technology sector is the largest payout for research and development. However, there is still a large room for enhancement globally despite the massive investments that go into the industry. Canada ranks 16th worldwide, according to the rankings provided by The World Economic Forum. Also, Canada has received a “C grade” in tech transformation from the Conference Board of Canada.
According to the Global Entrepreneurship Monitor, a worldwide board of researchers shows that 1 in 20 Adult Canadians have a running or have launched a business that claims to bring ideas, products, services, or ideas to the community. The tech sector’s pro-activity in the tech sector is a motivating sign for technology innovation in the country.
Growth opportunities for Canadian Tech Sector
Canada continues to rise in the innovation and tech sector each year, despite the challenges. Since most tech companies are majorly startups, there is potential for revenue increase within the tech sector in Canada. Accenture Consulting reports that Canada’s tech sector is outperforming other sectors of the economy.
Additional venture capital funds usually take seven to eight years to materialize for Canadian tech companies. However, that gap is slowly reducing to two to three years, a comparable period which investors leverage to tech startups in Silicon Valley in California.
Venture capital investments made to Canadian upcoming entrepreneurs and startups are a sign to show the rising potential of the tech sector.
Government funding
Apart from venture capitalists, Canadian tech companies also receive federal and provincial funds, and several Canadian government funding programs support technology and innovation.
Industrial Research Assistance Program (IRAP) is a tech fund that specializes in large scale projects covering 60 to 80 percent of total expenditure. IRAP deals with companies dealing with commercialization and development of innovative processes, products, or services.
Sustainable Development Technology Canada (SDTC) is a tech fund that also gives out development funding. The grant covers Canadian companies dealing with environmental challenges such as clean water, clean air, and climate change. Several other government funding programs include the Ontario Centers of Excellence Partnerships, Mitacs Research Grants, and NSERC Research Grants.
All in all, the Tech sector in Canada has increased the job growth rate surpassing that of the U.S. Economic growth in the industry is a sure sign that the tech jobs and projects will experience exponential growth by 2026.
