The Ontario Technology Corridor Advantage
The Ontario Technology Corridor
OTC brings
together the top
interactive digital
media clusters in
Partnership with
the Province of
Ontario
Hamilton
Niagara Region
London
London
2
Niagara
Greater Toronto Area andGTAOttawa
~ London ~Region
Niagara ~ Ottawa ~ Waterloo
Population:
5.5 million
Companies
3,362
:
Workforce:
148,000
Population:
1.3 million
Companies:
1,800
Workforce:
80,000
3
Waterloo Region and CityGTA
of~ London
London
~ Niagara ~ Ottawa ~ Waterloo
Population:
500,000
Companies
450
:
Workforce:
26,000
Population:
450,000
Companies:
350
Workforce:
8,000
4
Niagara Region
GTA ~ London ~ Niagara ~ Ottawa ~ Waterloo
Population:
427,421
Companies
470
:
Workforce:
5
1,000
Top 10 reasons to invest in Ontario
1.
Stable, highly talented, motivated workforce
2.
Access to the North American market (NAFTA)
3.
Openness to diversity and multiculturalism
4.
Economic engine of Canada
5.
World class research institutions
6.
Innovation leadership
7.
Low risk business environment
8.
Superior infrastructure
9.
Business incentives
Strong
government
support
An Innovative
investment
Partnership
A well-developed
educational
infrastructure
10. Quality of life
6
The Ontario Technology Corridor offers
one of the world’s most educated populations
7
Digital gaming related programs
PROGRAM TYPE
NUMBER OF PROGRAMS
2008 ENROLLMENT
Game
14
712
Animation
22
1,083
Graphic Design
14
2,118
Media inc. Film
29
2,792
Other
4
432
Game & Animation Subtotal
83
7,137
Software Engineering (College)
6
216
Computer Science (University)
43
7,843
Computer Engineering (College)
6
1,049
Computer Engineering (University)
10
715
Computer Programming (College)
26
1,460
Computer/Software Subtotal
91
11,283
Grand Total
174
18,420
8
Ontario’s NAFTA advantage

444 million people in North America’s
$16 trillion market

In addition to eliminating tariffs, NAFTA assures:

Free transport of goods

Free movement of staff
your tech

Protection of investment/intellectual property
company:

Product certification

Commercial border crossings average
less than 10 minutes

New partnerships and investors

Skilled suppliers to support the
energy industry supply chain

Economic growth
What this
means for
9
Openness to diversity and multiculturalism
10
The Ontario Technology Corridor
is the economic engine of Canada


The Ontario Technology Corridor represents 90% of the ICT
industry in the province. Key Sectors include: software
development and services, telecom equipment, digital media,
cleantech, microelectronics
Gaming is a key component of the Canadian ICT sector,
generating between $1.5 and $2.0 billion in revenues in 2007

11
Ontario has world class universities and colleges
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University of Waterloo
Wilfred Laurier University
University of Toronto
Ryerson University
York University
Brock University
University of Western
Ontario (Western)
University of Ontario
Institute of Technology
Ontario College of Art &
Design (OCAD)
Carleton University
University of Ottawa
McMaster University
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Conestoga College
Centennial College
George Brown College
Humber College
Seneca College
Sheridan College
Niagara College
Fanshawe College
Durham College
Algonquin College
La Cité collégiale
Mohawk College
12
Ontario – the innovation society!
 University of Toronto ranked
Canada’s top researchintensive university with 6
Nobel Prize-winning graduates
 University of Waterloo
ranked Canada’s #1 for “Best
Overall”, “Most Innovative”,
and “Leaders of Tomorrow”
comprehensive university in
Maclean’s Business Magazine
2007 survey. It is renowned
worldwide for its leading
computer science, math, and
engineering programs
RYAN: ACADEMY AWARD® WINNER FOR
BEST SHORT ANIMATED FILM (2005)
 335 patents in 2007, the GTA
ranked 15th in the world
13
Ontario companies take advantage of Canada’s
low-risk business and regulatory environment
A strong fiscal position
 Canada is experiencing 2nd longest period of
economic expansion in Canadian history, and has
been reducing debt at a record rate
Low Inflation and low interest rates
 Over the past five years, Canada has enjoyed
relatively low inflation – averaging 2.3% compared
to 3.2% for the U.S. and 2.1% for the G7.
 Canada’s targeted inflation rate range between 1%
and 3% has been extended until 2011
A growing domestic economy
 According the Prosperity Potential Index, Canada
ranks 1st in terms of the likelihood for economic
prosperity in the year 2020
 Canada is the best place for doing business in the
G7 according to the Economist Intelligence Unit and
it ranked fifth overall out of 82 countries in the
global business rankings for the forecast period
(2010-14)
14
Excellent infrastructure for business air travel
Ottawa
MacdonaldCartier
International
Airport
Toronto
Pearson
International
Airport
London
International
Airport
15
Toronto
Billy Bishop
City Centre
Airport
The Region
of Waterloo
International
Airport
Niagara is one of the busiest Canada-U.S. borders
Niagara’s border crossings are amongst the busiest in Canada
Niagara has four
monumental crossing
bridges. They rank 2nd only to
Kennedy International as the
busiest point of entry between
Canada and the US, the
world’s largest trading
relationship
The Welland Canal offers direct
shipping access from the Atlantic
Ocean. It is an important traffic
route for transporting goods
16
Ontario enjoys an established mass transit system
“The Better Way”
 GO Transit is Canada's
first, and Ontario's only,
interregional public transit
system, linking Toronto
with the surrounding
regions. The GO system
carries more than 50
million passengers a year
in an extensive network of
train and bus services
 The Corridor is a VIA Rail
passenger train service area
in the Canadian provinces of
Quebec and Ontario
 The Corridor service area
has the heaviest passenger
train frequency in Canada
17
 The Toronto Transit Commission’s (TTC)
subway system is linked with buses and
streetcars that provides a one fare journey
around Toronto, Markham, Richmond Hill,
Vaughan, Mississauga, Aurora and Newmarket
 The TTC carries approximately 1.5 million
riders on an average business day and uses
hybrid buses which use less fuel and have lower
emissions than traditional diesel-fuel buses
Well developed highway, rail, and
shipping
Ontario’s Road and Rail Network
Ontario has the largest and
busiest freeway network in
Canada, consisting mainly of
efficient 400-Series Highways
and supplemented by
municipal expressways
18
Highly integrated telecommunications network
Highly integrated telecommunication networks
The Ontario Technology network offers:
 One of the most extensive telecommunication
networks in North America
 A highly integrated telecommunications network including:
- The largest “free calling” area in North America
(416/647/289/905)
- 100% Digital Telecom Infrastructure
- High speed data services
- Internet connectivity
- Private lines
- E-business services
19
G-8’s most favourable tax treatment for R&D
R&D savings vary by the size and type of corporation. For example,
in 2010 the after-tax cost of a $100 R&D expenditure could range from
$55.01 to as low as $36.72 for applicable research institutes.
20
Ontario R&D incentives at a glance
SUPPORT
PROGRAMS/INC
ENTIVES
CRITERIA
HOW MUCH
Ontario Business
Research
Institute Tax
Credit (OBRITC)
Must incur qualified expenditures
in respect of scientific research
and experimental development
(SR&ED) under an eligible
contract with an eligible research
institute (ERI)
20% refundable tax credit for SR&ED
expenditures incurred in Ontario under
an eligible contract with an ERI. The
maximum amount a corporation can
claim is $4 million
Ontario
Innovation Tax
Credit
Must carry on eligible SR&ED
in Ontario
10% refundable tax credit for
qualifying. Can be combined with
OBRITC (above) for a total of 30%
Ontario Research
and Development
Expenditures
Deduction
Must carry on eligible SR&ED
in Ontario
Allows corporations to exclude from
Ontario taxable income the portion of
federal investment tax credit that
relates to qualifying SR&ED
expenditures through Ontario pool
calculation on CT23 Schedule 161
21
Digital media incentives in Ontario
Ontario Media Development Corporation (OMDC)
SUPPORT
PROGRAMS/INCEN
TIVES
CRITERIA
HOW MUCH
Ontario Computer
Animation & Special
Effects Tax Credit
Computer animation and special
effects activities in film or TV
production
20% refundable tax credit for eligible
labour expenditures
Ontario
Interactive Digital
Media Tax Credit
Labour, marketing and distribution
expenditures for the creation of
interactive digital media products
25% of eligible expenditures; 30% for
qualifying small corporations
OMDC Interactive
Digital Media Fund
Labour expenditures and eligible
marketing and distribution expenses
claimed with respect to interactive
digital media products
A non-refundable contribution of up to
$100,000 to a maximum of 50% of the
project budget to create a market-ready
interactive digital media content product
OMDC Video Game
Prototype
Initiative
The creation of a prototype in order
to secure a publisher or attract
financing for a market-ready,
commercial video game product
A repayable contribution of up to
$500,000 to a maximum of 50% of
eligible expenses for their prototype
OMDC Ontario
Sound Recording
Tax Credit
Eligible production and marketing
costs incurred by a qualifying
corporation with respect to an eligible
Canadian sound recording
20% refundable tax credit for eligible
sound recording company with respect to
an eligible Canadian sound recording by
an emerging Canadian artist or group
22
Excellent culture and sports facilities
Stable ~ Safe ~ Affordable ~ Cosmopolitan
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Safe, stable, and well governed
Stable ~ Safe ~ Affordable ~ Cosmopolitan
 Canada is a constitutional monarchy
 Canada has a three-tiered system with Federal,
Provincial, and Municipal levels of government
 Municipal governments are under provincial jurisdiction
and governed by an elected mayor and council
24
Great cities and towns offering a great life
Stable ~ Safe ~ Affordable ~ Cosmopolitan
With low crime, little threat
from instability or terrorism
and highly developed
infrastructure, Canada is
one of the most liveable
destinations in the world
Economist Intelligence
Unit (EIU)
25
26
Source: Mercer Human Resource Consulting, 2009
Index: New York City = 100
Very high quality of life
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