Tech Sector Plays a Huge Role in the Canadian Economy

A new report by the Brookfield Institute for Innovation and Entrepreneurship at Ryerson University revealed that Canada’s high-tech sector plays a larger role in the overall economy than expected. The Institute analyzed data and jobs across a variety of industries to determine which should be considered high-tech. The study found 864,000 employees (5.6% of total employment) in Canada are high-tech workers.

The tech sector in Canada includes 71,000 firms and $117 billion in Canadian GDP—approximately 7.1% of Canada’s real economic output. The interesting part is that two-thirds of the high-tech companies are small operations with fewer than four employees. And in regards to private-sector investment in research and development, the most money went to the tech-sector—$9.1 billion.

Toronto led the way as one of the largest urban centers with tech professionals. 1.4 percent of Toronto’s working population is considered a tech professional, coming in just behind Montreal at 1.7%. Vancouver and Calgary followed close behind at 1.3%. Toronto had one of the highest concentrations due to a larger population as well as big employers such as IBM.

The reason why the tech sector plays such a significant role is in part due to the workforce. Tech professionals are more likely to have university degrees, thus earning higher annual wages and generally being younger than the overall labor force.

“If we want to build an economy that is relevant to 21st century market forces, and technological trends, we need to continue to grow and support the tech sector, and ensure it becomes an integral part of our economic strategy for our country,” Sean Mullin, Executive Director of the Institute, told The Star.

The future of Canada is tightly linked to the prosperity of the tech sector in the long run. That’s why the Ted Rogers School of Business at Ryerson University offers an MBA in Management of Technology and Innovation.

regions: Toronto

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