5 Things Canada Should Do to Own the Global Technology Industry
Canada is on the brink of becoming a global leader in technology, but to achieve this ambitious goal, we must take decisive and strategic actions. The following five steps outline a path to dominance in the global tech industry, incorporating data and references to underscore the urgency and potential of these initiatives.
1. Invest in Inclusion
The foundation of a thriving tech sector is a diverse and talented workforce. However, despite Canada’s rich diversity, we are not fully harnessing this potential. Women make up only 23% of the tech workforce, and the representation of minorities is even lower, with Black Canadians accounting for just 2.6% of the sector. This disparity is a significant missed opportunity. Research from McKinsey has shown that companies with diverse executive teams are 25% more likely to achieve above-average profitability.
To address these gaps, we must make substantial investments in business and engineering education for girls and underrepresented minorities. Initiatives like Canada Learning Code, which focuses on equipping women and youth with digital skills, are steps in the right direction, but more needs to be done on a larger scale. Furthermore, it’s crucial to teach all students about team dynamics and collaboration to avoid groupthink and foster innovation. Programs that encourage mentorship and networking for minority groups can also play a pivotal role in creating a more inclusive tech ecosystem.
“Research from McKinsey has shown that companies with diverse executive teams are 25% more likely to achieve above-average profitability.”
2. Build Relationships With Top Investors
Innovation thrives on capital, and Canada is in a unique position with its substantial capital reserves. The Canada Pension Plan Investment Board (CPPIB), for instance, manages over $400 billion in assets. However, despite this wealth, Canadian startups often struggle to attract significant investment, as much of our capital is invested in international venture capital funds.
To rectify this, entities like the Business Development Bank of Canada (BDC) and CPPIB should prioritize bringing US and global venture capitalists to our tech hubs in Toronto, Vancouver, Montreal, and Waterloo. By showcasing the potential of our startups, we can attract the investment needed to fuel growth. Historical data supports this strategy; for instance, BDC’s involvement in fostering connections with international investors has led to increased funding for Canadian startups.
“Canadian startups often struggle to attract significant investment, as much of our capital is invested in international venture capital funds.”
Moreover, fostering these relationships can lead to more substantial investments and partnerships. A report from the Information and Communications Technology Council (ICTC) noted that increased foreign investment correlates with higher growth rates in tech sectors, emphasizing the need for Canada to be proactive in attracting global capital.
3. Provide Incentives for Large Canadian Corporations to Adopt New Innovations
The success of new technologies often hinges on their early adopters, and unfortunately, Canadian companies have historically been slow to adopt new technologies compared to their US counterparts. A survey by the Canadian Chamber of Commerce found that 55% of Canadian businesses feel they are lagging in technology adoption. This reluctance poses a significant barrier to innovation.
“We need to leverage tax incentives and encourage large Canadian corporations to take risks on new products. Government policies that provide tax credits for R&D investments or early adoption of new technologies can be highly effective.”
To address this issue, we need to leverage tax incentives and encourage large Canadian corporations to take risks on new products. Government policies that provide tax credits for R&D investments or early adoption of new technologies can be highly effective. For example, the Scientific Research and Experimental Development (SR&ED) tax incentive program has been beneficial but could be expanded to offer more support for early technology adoption.
Additionally, creating a culture that rewards innovation is crucial. According to a report by Deloitte, companies that prioritize innovation are more likely to see sustained growth and market leadership. Encouraging large corporations to adopt new technologies through recognition programs and public endorsements can drive this cultural shift.
4. Focus On Our Strengths
Canada should capitalize on its existing strengths rather than trying to excel in every industry. By concentrating on areas where we have a natural advantage—such as AI applications, quantum computing, and agtech—we can establish ourselves as global leaders. For instance, Canada is home to some of the world’s leading AI research institutes, like the Vector Institute in Toronto, and the country has been recognized for its advancements in quantum computing.
“Canada should capitalize on its existing strengths rather than trying to excel in every industry. By concentrating on areas where we have a natural advantage—such as AI applications, quantum computing, and agtech—we can establish ourselves as global leaders.”
Geographically concentrated tech clusters have proven to be highly successful. The Toronto-Waterloo corridor, often referred to as “Silicon Valley North,” is a prime example of a thriving tech hub that benefits from proximity to top universities, research institutions, and a vibrant startup ecosystem. Encouraging further development in these key areas while supporting other emerging hubs like Vancouver, Montreal, and Halifax can enhance our competitive edge.
Specialization and focused investment in these hubs are essential. According to the Brookfield Institute, tech clusters that concentrate resources and talent see higher rates of innovation and economic growth. This approach not only boosts local economies but also strengthens Canada’s position in the global tech landscape.
5. Government Should Act as “Chief Salespeople”
Our senior government officials have a vital role to play as advocates for high-potential companies. Rather than trying to pick sectors or winners, they should focus on actively promoting Canadian tech firms at global events and product launches. Government endorsements can significantly boost international adoption. For example, Germany’s Chancellor frequently promotes German startups at international forums, leading to increased visibility and investment.
“Our senior government officials have a vital role to play as advocates for high-potential companies. Rather than trying to pick sectors or winners, they should focus on actively promoting Canadian tech firms at global events and product launches.”
Canadian leaders should adopt a similar approach. By being more proactive and visible in their support for the tech industry, they can attract international interest and investment. Historical data from countries like Israel, where government officials actively promote their tech sector, shows that this approach can lead to substantial foreign investment and global partnerships.
Additionally, the government can facilitate connections between Canadian startups and international markets through trade missions and partnerships with global tech hubs. This proactive approach can help Canadian tech companies gain a foothold in competitive international markets.
Moving Forward Together
By embracing these strategies, Canada can harness its potential and establish itself as a dominant force in the global technology industry. The time for bold action is now, and with the right investments and initiatives, we can lead the way in innovation and technological advancement.
