To Win in Canada’s Digital Future, We Need a Stronger Foundation of Diversity and Innovation in Tech

Business leaders, policymakers, institutions, thought leaders and entrepreneurs agree that Canada’s economic growth is inextricably tied to our overall economic health and our ability to compete in a rapidly digitizing global economy. In this period of fast-paced technological, economic, social and political change, nations that are able to respond, adapt and innovate apace emergent tech and, in spite of disruptive forces, will fare better at creating stable opportunities for their citizens and more sustainable growth. 

We agree that the potential of Canada’s digital future is tremendous, but we must shore up the pipeline and support that will make or break our ability to respond, compete and thrive as emergent technologies take center stage in the global tech economy.  Three foundational requirements that I consider critical to our success are as follows:

Ramping Up Digital Literacy and Digital Equity Efforts

Digital literacy and particularly digital equity in Canada need ongoing attention, prioritization, and investment so that we can nurture a future-ready workforce that is able to adapt to the digital transformation and rapid technological innovation that’s shaping the global economy. Where digital literacy refers to the ability to understand and use various forms of technology, digital equity refers to a state where all people and organizations can access the digital technology needed to participate and succeed not only in the digital economy but in a democratic society. 

As recent research by Deloitte has reported, in spite of growing investment by both government and industry, too many Canadians remain under-resourced in terms of affordable internet access, technology, skills development, and understanding of the safeguards required to thrive and fully participate in the digital era. 1.4 million Canadians and 43% of First Nations households on reserve still lack reliable access to minimum internet speeds, with many more Canadians struggling to afford quality internet access at home. These inequities not only hold our citizens and communities back but also our readiness for a digitally dominant future. 

Organizations and businesses face similar challenges. They need help navigating, resourcing, and implementing the digital systems, tools, people, and processes that will help them compete, innovate, and grow. Organizations report not knowing which digital tools to invest in or where to turn for affordable expert advice on digital investment decisions.

While the increased funding we are seeing is part of the puzzle, we need to better understand why preexisting programs are underutilized and how they can be structured better and made easier to access. It’s also essential that stakeholders unify around strategy, priorities and a shared vision of the business opportunities and outcomes that digital literacy and digital equity programs can help bring to fruition.

In 2020, I peer-reviewed an eye-opening report by The Council of Canadian Academies titled “Waiting to Connect – The Expert Panel on High-Throughput Networks for Rural and Remote Communities in Canada.” Incremental policy approaches have failed to close the connectivity gap between urban and rural Canada, and introducing new technologies may actually unintentionally exacerbate the disparities. The report doesn’t have a magic bullet answer but does come up with nine principles that can guide the journey to equitable connectivity:

• Equity
• Universality
• Future-proof technology
• Transparency
• Accountability
• Competition & Redundancy
• Place-based & needs-based approaches
• Meaningful inclusion
• Indigenous reconciliation

Faster Progress Increasing Diversity and Women in Tech

Canada has the most highly educated workforce in the G7, a statistic we should take pride in, and our tech sector continues to drive strong job growth in the country. Where the rapid digitization of the global economy is a concern, however. We need more than an educated workforce to draw upon; we need a representatively diverse one. While it’s encouraging to see 2SLGBTQ and people of colour increasingly well-represented in Canada’s tech sector, women, Indigenous peoples, and people with disabilities are still significantly underrepresented.

In 2023, Statistics Canada reported that 24% of tech workers across Canada were women, an increase of just 3% since 2001. Research from a global study published this year found that 57% of women in Technology, Media, and Telecom (TMT) plan to leave their jobs within two years; a finding echoed by a recent US study that indicated more than 50% of women working in tech are likely to quit before the age of 35, and 56% by midcareer. 

The impact of diversity in tech on innovation, productivity, and corporate success is well documented and profound: different lenses, aspirations, questions and experiences increase competitive advantage. A 2022 analysis by Gartner found that 75% of organizations with diverse frontline decision-making teams exceed their financial targets, while gender-diverse and inclusive teams outperformed gender-homogeneous, less inclusive teams by 50% on average. Moreover, diverse organizations have appreciably greater success in capturing new markets. 

As Canada increases research, development and economic investment in transformative emerging technologies, such as artificial intelligence (AI), machine learning (ML), quantum computing, and blockchain, this lack of representation will impact product success. Whether creating a Minimum Viable Product (MVP) or an Exceptional Viable Product (EVP), diverse teams improve bias detection, mitigation and impacts in new technologies, ultimately creating better products and product experiences for all users.  Canada’s digital future and its economic potential will be hindered until we rectify the practical reasons why women – and other diverse workers – remain underrepresented. 

Reduce Barriers and Risks Around New Tech Businesses 

The tech industry’s backlash to Ottawa’s recent proposal to increase capital-gains taxes is an important recent example of how we not only get in the way but also disincentivize risk-taking, innovation and technology entrepreneurship. Rather than making it harder to start a business in Canada, policymakers should look to increase access to funding programs like the Industrial Research Assistance Program (IRAP) and the Strategic Innovation Fund. The government should also look at establishing a better social safety net for startups and tech entrepreneurs, collaborating with ecosystem partners to provide direct grants and low to zero-interest loans so that if a startup fails, they’re not doomed from applying their learnings and trying again down the road. We can also drive impact by expanding incubators, launch pads and accelerators where startups can build their networks, find mentorship, expand opportunities for collaboration, and access programs and resources more easily. This would enable early-stage tech companies not only to scale their solutions more successfully but also to remain in Canada to create the momentum and growth our companies, communities, and citizens need for a strong digital future.