ICT Sector in Canada

An Expert's View about Programming and Software in Canada

Posted on: 1 Oct 2010

In 2008, the ICT sector contributed CAD$60.4B (£39B) to the Canadian economy, 4.9% of GDP. And the sector comprised around 32,000 ICT firms and employed 572,700 people, representing 3.3% of overall Canadian employment.

Sector briefing Information & Communication Technologies (ICT) Opportunities in Canada Why Canada? In 2008, the ICT sector contributed CAD$60.4B (£39B) to the Canadian economy, 4.9% of 1 GDP, comprised of : ? Telecommunications services 37.3% ? Computer systems & design 24.1% ? ICT manufacturing 14.6% ? Software publishing 7.5% ? ICT wholesaling, rental & leasing 6.4% ? Cable & other programme distribution 6.1% ? ICT services 4% In 2008, the sector comprised around 32,000 ICT firms and employed 572,700 people, representing 3.3% of overall Canadian 2 employment . Revenues in the sector ??the ICT sector amounted to CAD$155.3B (£100.2B) and R&D contributed CAD$60.4B investment CAD$6.06B (£3.9B). (£39B) to the Canadian economy, 4.9% of GDP.? Find general information on the Canadian market conditions on the UKTI Website. The Doing Business in Canada Guide for Canada gives an overview of Canada?s economy, business culture, potential opportunities and an introduction to other relevant issue. 1 Industry Canada www.ic.gc.ca/eic/site/ict- tic.nsf/eng/h_it05864.html 2 Industry Canada www.ic.gc.ca/eic/site/ict- tic.nsf/eng/h_it07229.html UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada Opportunities Software and Computer Services Wireless 3 Canada maintains strengths in design, At the end of December 2009 , there were 22.8 development, and production of pre-packaged million mobile phone subscribers in Canada. 7 and custom software, including in : Despite Canada?s population of 34 million and ? Enterprise application its vast geography, carriers are able to provide ? E-Security coverage to 99% of Canadians. Canadians send ? Imaging 122 million text messages per day. ? Financial Services The sector will continue to grow due to factors Of the 32,000 ICT companies in Canada, 79% including: 8 are in software and computer services . ? comprehensive nation-wide service Software and computer services industry ? Canada consistently ranks among the top clusters are present throughout the country, countries offering the lowest customer 4 pricing for wireless services with significant clusters compromising of ? migration from landline to wireless, currently companies, research centres and universities in half of all phone connections are wireless British Columbia (Vancouver and Victoria ? mobile data applications (internet, e-mail, areas), Alberta (Calgary and Edmonton areas), telemetry) Ontario (Kitchener-Waterloo, Greater Toronto ? Wi-Fi hotspots continue to increase Area ? GTA, and Ottawa areas), and Quebec (Montreal area). The Canadian wireless sector is valued at 5 CAD$36B (£23.2B), with industry strengths 6 including : ICT Security ? Cellular equipment Heightened awareness of threats to critical ? Mobile devices and customer premises infrastructure such as border crossings, equipment (CPE) communications, the financial services sector, ? WiMAX and to individual privacy and consumer ? Ultra-wideband and radio frequency protection has led to increased demand for identification security solutions. There are approximately ? Software-defined radio (SDR) 700 Canadian ICT security companies providing solutions and services related to biometrics, Canada is home to global leaders in wireless cryptography and encryption, cyber security, product and infrastructure developers including ICT security consulting, mobile authentication, Research in Motion (RIM) (wireless solutions public safety, surveillance and tracking for mobile communications), developer of the technologies. The majority of these firms are Blackberry®, Wi-Lan (high speed internet and located in and around Ottawa, Toronto, 9 wireless broadband solutions), Sierra Wireless Vancouver and Montreal . (wireless data devices). The Canadian ICT security market is valued at 10 Wireless industry clusters are present CAD$1.2 billion and projected to reach throughout the country, with significant CAD$2 billion by 2011. SMEs appear to be the clusters comprising of companies, research drivers to implement ICT security measures, centres and universities in British Columbia but this tends to be reactive to compliance (Vancouver and Victoria areas), Ontario requirements, such as the Personal Information (Kitchener-Waterloo region, Greater Toronto Protection and Electronics Documents Act Area ? GTA, and Ottawa and surrounding (PIPEDA) and the Anti-Terrorism Act (ATA), area), and Quebec (Montreal and surrounding rather than proactive. Increased spend is area). expected to be driven by investment in phishing and pharming solutions, as more and 3 Canadian Wireless Telecommunications Association (CWTA) www.cwta.ca, accessed July 2010 7 Invest in Canada Software 2009 4 Organisation for Economic Co-operation and Development http://investincanada.gc.ca/download/836.pdf 8 (OECD) www.oecd.org Invest in Canada 5 Canadian Wireless Telecommunications Association http://investincanada.gc.ca/eng/industry- (CWTA) www.cwta.ca, accessed July 2010 sectors/software.aspx 6 9 Invest in Canada Wireless 2009 ICT Security and Canada: www.investincanada.com 10 http://investincanada.gc.ca/download/838.pdf IT Security and Canada: The Future is Here, 2008 UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada more, hacking activities are done to generate companies seeking to access the Canadian 11 17 financial gain . market . E-HEALTH/HEALTHCARE ICT Interactive/Digital Media and Game Canada Health Infoway is an independent agency whose members The 2008 Canadian Interactive Industry include the federal, 18 provincia Study estimated there are 2960 l and territorial Deputy Ministers of Health, and was estab interactive/digital media companies in Canada lished to transform and modernise Canada?s healthcare system. Its generating CAD$4.7B (£3B) in revenue, with Vision 2015 outlines the transformation from a CAD$2.1B (£1.4B) of this generated by the 19 paper-based system to an e games sector . Around 85% of firms are lectronic one at a cost wholly Canadian owned and the industry of approximately CAD$10 billion, CAD$350 20 per cap employs 51,000-52,500 people .ita, but with a projected CAD$7 billion 12 per year benefit . The current cost of health Canada has over 100 new media programs in care in Canada is CAD$183.1B (£116.8B), professional schools and institutions including approximately 11% of GDP. It is estimated the Art Institute of Vancouver, the National that fully implemented Electronic Health Animation and Design Centre, the Banff New Records (EHR) could produce CAD$6B (£3.9B) Media Institute, and Sheridan Institute of 13 in annual savings . Technology. Recently, Ryerson University, University of Toronto and the University of Use of electronic medical/health record Waterloo announced a partnership to create a (EMR/EHR) varies across the country, with an 21 new digital media programme . estimated 23% of Primary Care Physicians 14 Tax credits, which vary by province, have been adopting the system . Though a number of a significant factor to enticing interactive media factors contribute to the low take up, there is a companies, primarily games, such as Electronic growing trend of patients taking a more proactive role with managing the Arts, Edios and Ubisoft, to set up operations in ir health. A number of healthcare organisations have Canada. In addition to tax credits, other already establ factors such as R&D/innovation, related ished online portals geared educational institutions/infrastructure towards specific patient groups such as 15 diabetics generating talent, complementary companies, and cancer patients . and domestic and foreign demand, have made Domestic brand awareness remains a challenge Canada an attractive location to maintain for Canadian e-health firms, with some operations. choosing to pursue the US market in lieu of the domestic ma Related financing and new/alternative business rket (one tenth the size of the US market). models, education and skills development, and Lack of a national, streamlined attracting and retaining talent, are key issues system and fragmentation of the Canadian impacting the sector and areas where the healthcare system makes market penetration difficult as healthcare se sector is keen to further explore related rvices are delivered at solutions. the provincial/territorial level (13 systems). The Canadian industry is being encouraged to Interactive/digital media clusters are present build brand awareness in order to forge throughout the country, with significant 16 strategic alliances to service the market . clusters comprising of companies, research Proven solutions, such as use by the NHS, tend centres and universities in British Columbia to generate attention for consideration for UK (Vancouver and Victoria areas), Ontario (Greater Toronto Area ? GTA, and Ottawa areas), and Quebec (Montreal area). 11 ?IDC: Canadian security market will reach $1B?, itbusiness.ca 6 June 2007 12 Focus on e-Health, Backbone, September/October 2007 13 Canada Health Infoway, Reporting to Canadians, page 6, 17 www.infoway-inforoute.ca/flash/lang-en/ar2009- Focus on e-Health, Backbone, September/October 2007 18 2010/docs/CHI_AnnualReport_2009-2010_ENG.pdf Commissioned by the Canadian Interactive Alliance 14 The Information Technology and Innovation Foundation, www.ciaic.ca 19 Explaining International IT Apllication Leaderships, Daniel ?Canadian Games Market Hits Record $1.66 billion?, Castro, September 2009, www.itif.org/files/2009- Gamasutra, 19 January 2009 20 leadership-healthit.pdf Canadian Interactive Industry Profile 2008, Canadian 15 Focus on e-Health, Backbone, September/October 2007 Interactive Alliance, prepared by Nordicity, February 2009. 16 21 Canadian e-health sector could use a booster shot, ?Ontario universities plan digital media program?, CBC business.ca, 13 February 2007 News, 6 March 2009. UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada Photonics Canada maintains around 370 photonics related companies, employing 20000 people (40% in R&D) and generates CAD$4.5B (£2.9B) in revenue each year. Annual R&D spend is estimated at around CAD$150M 22 (£97.4M) per year . International collaboration alliances can be leveraged through R&D and commercialisation opportunities in this market. Canada is home to world class photonics R&D facilities including the Advanced Laser Light Source in Montreal, TRLabs (ICT consortium) in western Canada, the National Optics Institute in Quebec City. The province of Ontario maintains about 60% of Canada?s photonics industry, with key centres in Toronto, Ottawa, and Waterloo. It also maintains research centres, such as the Centres for Research in Photonics and the Optical Technology Centre, and commercialisation and science parks such as the MaRS Centre, the Life Sciences Technology Park, and the Photonics Fabrication Centre (CPFC), which provides services including simulation, design, fabrication, testing and prototyping. Much of Quebec?s photonics sector is based in and around Quebec City and includes the National Optics Institute, which has spun off over 20 companies since 1985, along with eight other photonics facilities. British Columbia maintains close R&D/commercialisation links between its three main universities ? University of British Columbia, Simon Fraser University and the University of Victoria. Alberta maintains a number of R&D/collaboration facilities including the National Institute for Nanotechnology (NINT), the Alberta Centre for Advanced Microsystems and Nanotechnology Products (ACAMP) and nanoAlberta. 22 Invest in Canada Photonics 2009 http://investincanada.gc.ca/download/835.pdf UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada Major events and activities UKTI contacts Canadian Organisation for the Gilda Carbone Advancement of Computers in Health Trade Officer (COACH) E-Health Conference British Consulate-General www.e-healthconference.com Toronto, Canada Tel: (001) 416 593 1290 ext 1+2224 Montreal Games Summit Email: Gilda.Carbone@fco.gov.uk http://sijm.ca Web: www.ukti.gov.uk Interactive Exchange (IN), organised by Mathieu Blandford Interactive Ontario Trade Associate www.interactiveontario.com British Consulate-General Toronto, Canada NB: Canadian trade delegations (normally Tel: (001) 416 593 1290 ext 1+2257 organised by provincial or federal government Email: Mathieu.Blandford@fco.gov.uk agencies or industry associations) also exhibit Web: www.ukti.gov.uk and attend key global industry events, providing additional opportunities for UK companies to meet these Canadian delegations, including at Mobile World Congress, The Tokyo Game Show, CTIA Wireless, CeBIT, Game Developers Conference (GDC). Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for you business in the Canadian market are advised to to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Canada with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential customers specialist advice, please visit the UKTI website in the Canadian market to find contact details for your local UKTI ? Establishment of interest of such contacts office. in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Information Communication Technology (ICT) Opportunities in Canada
Posted: 01 October 2010

See more from Programming and Software in Canada

Expert Views    
ICT Sector in Canada   By UK Trade & Investment
Information & Communication Technology   By Bedjasses
Information and Communication Technology   By Bedjasses
ICT Sector   By UK Trade & Investment