Canada’s Thriving Technology Ecosystem – An OverviewPublish Date: March 2, 2023
A politically and economically stable country, Canada’s burgeoning technology ecosystem represents another dimension of the nation’s prospering economy. It is an ever-growing horizon where technology and investments are driving each other’s growth and thus strengthening the nation’s economy more quickly than ever.
An Overview of Canada’s Technology Space
The report, Tech Industry Outlook, spoke about Canada’s thriving technology sector, the demand for digitization, and new technology proliferating across every part of the Canadian economy. The report projects a growth of 22.4 percent expected for the 2021-24 period. It is way more than the 5.3 percent projected for 2022.
What’s even more enticing is that the increasing momentum won’t slow down anytime. About 30 percent of SMEs plan to invest in software over the next 12 months. Besides, 52 percent of Canadian businesses intend to buy intangible assets like software IP, R&D, marketing, and employee training. Furthermore, as per Statista, revenue in the IT services market is estimated to reach USD 27.90 billion in 2023!
Factors Driving Canada’s Growth Across the Tech Space
Canada doesn’t have a strategic location. Unlike its counterparts, Singapore, India, etc., who have a strategic time zone and location advantage, Canada is way too westward near the north pole. But does that retard Canada’s economic and technological growth, in particular? No. Canada offers some unique advantages that not many countries on the planet do. Let’s look at some factors fueling Canada’s tech growth.
Canada is one of the best places to live on earth. According to the OECD Better Life Index report, the country (with a score of 7.4) ranks among the top ten countries within a similar economic group. Canada’s score is way better than the OECD average.
The country has also prospered as a destination for venture capital investments. In 2021, Canada outperformed every preceding year with a total of 781 deals closed and raising a whopping 13 billion dollars. Ontario, with 358 deals, raised USD 6.1 billion. Toronto emerged as the nation’s technology hub within Ontario, with 233 deals closed and 4.4 billion dollars raised.
One more significant reason fostering the exponential growth of Canada’s technology industry is its prominent position across OECD Better Life Index’s Student Skills category. With a score of 523, Canada was outranked by only Estonia (524) and Japan (529). The country’s respectable rank indicates its humongous potential in intellectual work impacting its technology industry.
Canada Outperforms United States with Technology Talent Workforce Growth
According to LinkedIn’s Workforce Report for Canada, Canada is outperforming the US with growth in its tech workforce over the past 12 months. Canada had a 1.6 percent growth compared to the US’s 1.1 percent.
As per the Canadian Venture Capital and Private Equity Association, the Information, Communications & Technology sector earned over C$9 billion, about 65 percent of the total Canadian venture capital investment.
US-based companies are looking for talent beyond their country of origin. One of the reasons for it is the remote working trend. Technology giants like Netflix, Amazon, Google, Meta, etc., have added tech jobs in Toronto and other areas across Canada.
Positioning Canadian Enterprises at the Vanguard of the Tech Revolution
While Canada’s tech space is making news, companies need a partner that can help them harness the power of every technology. YASH can help. We are a global technology enterprise with expertise across multiple platforms and technologies like SAP, Microsoft suite, digital transformation, cybersecurity, AI, ML, automation, and many others. We’ve built a considerable client base across Canada, delivering exceptional results for each. Click here to connect with us and discover how we can help you stay competitive.