STRENGTHENING CANADA’S DIGITAL ADVANTAGE
QUARTERLY SNAPSHOT OF CANADA’S DIGITAL ECONOMY
ECONOMICS | TALENT | TECHNOLOGIES
INFORMATION AND COMMUNICATIONS TECHNOLOGY COUNCIL (ICTC)
FALL 2013
The Information and Communications Technology Council (ICTC) is a leading not-for-profit national centre of
expertise conducting research, policy development, and creating talent solutions for the digital economy.
To discuss your organization’s requirements, visit www.ictc-ctic.ca (@ICTC_CTIC on Twitter)
Table of Contents
Executive summary
ii
ICT sector output and outlook
1
ICT output
1
Provincial comparison
2
Labour market trends
3
Employment level and joblessness
3
Provincial comparison
4
Women in ICT
4
Youth in ICT
5
Immigrants in ICT
6
Job growth
6
Demand and supply of skills
ICT employment outlook
Changing business practices and the labour market
8
8
9
Latest policy and industry developments
10
Key takeaways
12
About ICTC
15
Digital economy labour force
16
ICT sector
17
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not be distributed or reproduced in whole or in part without the express written consent of ICTC. To
reference this document, credit it appropriately using:
The Information and Communications Technology Council (2013). Strengthening Canada’s Digital
Advantage, Fall 2013. Retrieved from www.ictc-ctic.ca
Executive summary
The Information and Communications Technology Council (ICTC) is pleased to present the Fall 2013
edition of Strengthening Canada’s Digital Advantage (SCDA), exploring broad economic trends with
respect to the ICT labour market, technology developments, exclusive results from ICTC’s digital
platforms survey 2013, and more.
Several developments and issues have recently captured our attention:
ICT’s contribution to GDP continues to rise
Real GDP produced by the Canadian information and communications technology (ICT) sector grew by
$167 million in 2013 Q3 and reached $69.7 billion. Ontario produced the biggest share of that output
($31.7 billion), followed by Quebec, Alberta, and British Columbia. Please refer to page 2 for more details.
Downward trend in employment
Despite strong growth in output, the ICT labour market is showing signs of being impacted heavily by the
global macroeconomic uncertainties, including the U.S. federal government shutdown and aftershocks of
the European financial crisis. 773,000 ICT workers were employed in 2013 Q3, a significant decline
(32,000) compared to 2013 Q2. The jobless rate in ICT occupations was 3.5% in the third quarter of
2013. Detailed provincial, gender, and immigrant composition of the ICT workforce is discussed on pages
4 to 6.
Attracting youth to ICT critical to Canada’s future
Canada’s digital economy will continue to require skilled talent. Attracting and engaging tomorrow’s
prime-age workers in this economy continues to be critical. Employment in ICT occupations among those
aged 25 or younger saw a marginal quarterly decrease (1,000) in 2013 Q3. Current ICT employment
level among youth is 7% higher than a year ago in 2012 Q3. And yet, only 6% of all ICT jobs are held by
youth currently, compared to 15% of the jobs held by youth below 25 in the overall economy. Many ICT
occupations are suffering from an acute worker and skills shortage and thus present a very attractive
career option for Canada’s youth. The national jobless rate among those aged 25 or younger in Canada
is 13.4% at present. In stark contrast, joblessness among this age group in ICT occupations is much
lower at 4.0%. Please refer to page 5 for more details.
In-demand jobs
Technical support analysts, electronics technicians, software developers, graphical user interface (GUI)
developers, and informatics/business systems analysts are in very high demand. A significant number of
new jobs were recently created for these occupations along with some others, and more vacancies are
currently waiting to be filled. Please refer to pages 6 to 8 for more details.
Changing business practices and the labour market
This edition of SCDA presents results from ICTC’s original research on a topic very much on the minds of
many executives and policymakers at the moment: digital platforms. Please refer to page 9 for a
discussion of our just-released research findings.
Strengthening Canada’s Digital Advantage: Fall 2013
Page | ii
Policy and industry developments
Several key recent policy and industry developments are highlighted and discussed on page 10.
Key takeaways

Digital platforms, cloud services, and mobile technologies enable companies to be more efficient
and productive and reduce costs. ICTC’s recent original and research outlines the benefits that
these enabling technologies can provide. Read more on page 12.

Strengthening all employees’ capacities to function in a connected and digital workplace is crucial.
Due to a lack of skills or understanding, not all employees may embrace ICTs. Canada’s digital
economy is experiencing a high level of skill shortages. Companies need to look critically at what
their skill requirements are in the short and medium term, and plan accordingly.

What industry looks for in terms of skills and what Canada’s post-secondary system is currently
producing is often out of sync. The gap cannot be addressed by either industry or the postsecondary system acting in isolation. Many universities and colleges have introduced programs
that combine ICT with other fields. To ensure that their programs are reflective of the changing
industry demands and their graduates are fully equipped and prepared to fill these needs,
educators need to revisit the model they have been working with to find out about the labour
market realities, as this model has clearly not been working as well as expected. Active networking
with industry is greatly needed, and this can be accomplished by organizing career days and
expos, and inviting non-academia subject matter experts and industry leaders to speak with
tomorrow’s jobseekers to keep them encouraged and motivated.

In addition, educators require the assistance of a real-time tool to forecast skills needs of tomorrow
at the national and regional levels so that they can modify their curricula more quickly—despite the
long lead time required to create new academic programs—to address employers’ needs and offer
integrated, hybrid programs in timely fashion. Post-secondary schools also need to work with high
schools and policymakers to communicate to prospective students new or modified program
options and the careers to which those lead.

If corporate tax credits are tied to labour market practices to encourage focused (e.g. youth,
women, immigrants) hiring, service providers will have both incentives and means to provide
training opportunities to staff so they can upgrade their skills—a once common practice that has
regressed since the onset of the recession. For instance, Ontario Media Development Corporation
(OMDC) provides a refundable tax credit to eligible creative media industries to support hiring,
marketing, and content distribution expenses. Many of Ontario’s creative media enterprises are
recipients of this tax credit and find it very useful for increasing profitability and thus growth. In a
recent ICTC survey, 42% of the enterprises appreciate most the fact that this credit reduces their
operational costs, 33% recognize that it encourages productivity growth and innovation, while 17%
report the credit advantageous for hiring, increasing revenues, and boosting profit purposes.
Similarly, tax incentives provided in regards to innovation through the Scientific Research and
Experimental Development (SR&ED) Tax Incentive Program ensures that when tax credits are
factored in, $100 R&D expenditure can be reduced to an after-tax cost of less than $44 for a large
enterprise and less than $38 for a small enterprise. These are excellent models that can be
researched further and piloted in other industrial segments.

The economic benefit of programs such as IRAP, SRED, and CareerConnect for companies in the
ICT sector has been demonstrated. To get the most value out of these programs and to stimulate
Strengthening Canada’s Digital Advantage: Fall 2013
Page | iii
the growth of this high-contributing sector it is critical that small- to medium-sized companies are
aware of the programs available to them, and that the application process and administration is as
simple as possible. Awareness raising and process simplification are particularly important in light
of the fact that in a recent ICTC survey, a quarter (25%) of Ontario’s mobile apps enterprises report
not knowing of the OMDC tax credit program discussed above despite eligibility, while another 25%
do not apply due to reasons such as a lengthy or onerous process, or ineligibility. Awareness
campaigns through social media and other digital platforms will help with increasing eligible
applicants, while allowing submission of applications through mobile apps and other technologies
will resonate well with today’s entrepreneurs and their employees and potentially simplify the
application process.

Policymakers need to play a pivotal role to support nascent ICT service providers, who are
endowed with significant growth potential, especially given the low barriers to entry and existence
of strong infrastructure. The ICT sector’s contribution to Canada’s GDP has grown 9% over the last
four years. This growth is projected to increase year-over-year so it is critical for policymakers to
continue supporting and developing policies that strengthen companies in high growth markets. In
spite of sharp growth in recent years, a recent ICTC survey reveals that a quarter (26%) of
Ontario’s micro and SMEs are seeking funding to grow their operations and finding it challenging.
The biggest obstacle to funding is to demonstrate credibility, as a majority of small enterprises have
few or no assets to pledge as collateral. Access-to-capital issues are pervasive across Canada and
bridging the gap from angel investment or venture capital is a persistent challenge. It is important
for policymakers to recognize the role that small companies play in the innovation cycle and assist
them overcome various challenges; increased competiveness and job creation will result.
Key takeaways for the industry stakeholders, post-secondary education institutions, and policymakers are
discussed in further detail on page 12.
A final word
ICTC researchers are always pleased to discuss your research and data related requirements. We hope
you enjoy reading this issue of Strengthening Canada’s Digital Advantage.
Strengthening Canada’s Digital Advantage: Fall 2013
Page | iv
ICT sector output and outlook
ICT output
Real gross domestic product (GDP) produced by the Canadian ICT sector in the third quarter of 2013
(2013 Q3) increased sizably ($167 million) compared to the second quarter 2012 (2013 Q2),
1,2
contributing $69.7 billion to Canadian GDP (figure 1). The ICT sector accounted for 4.4% of Canada’s
total output of $1,583.8 billion in 2013 Q3. Emerging and non-traditional ICT subsectors are promising
new frontiers for innovation and economic growth. ICTs are redefining existing business models, and
enterprises in all economic sectors are integrating ICTs into their workflow to improve productivity and
efficiencies. The overall impact of ICTs on the Canadian economy as a result is much greater.
Figure 1. Canadian and ICT sector GDP (in billion dollars)
69.7
2013
Q3
2013
Q2
68.8
2013
Q1
68.6
68.4
2012
Q3
2012
Q4
68.3
2012
Q2
68.0
2012
Q1
68.5
2011
Q4
2011
Q3
68.6
69.5
1,583.8
2013
Q3
1,578.2
2013
Q2
1,572.0
ICT sector GDP
2013
Q1
1,563.7
1,557.7
2012
Q2
2012
Q4
1,550.6
2012
Q1
1,560.3
1,547.1
2011
Q4
2012
Q3
1,536.5
2011
Q3
Canada GDP
Source: ICTC; Statistics Canada
ICT sector output of $69.7 billion in 2013 Q3 was $1.3 billion higher than it was in 2012 Q3—a year-overyear (YOY) output growth of 1.9%. It also represents a 1.5% increase compared to two years ago (2011
Q3) and a 5.2% growth compared to three years ago (2010 Q3). ICT’s have a profound direct and
enabling impact on the overall economy. Technology is pervasive and all sectors of the economy adopt
technology on a continual basis to improve productivity. Output growth in the ICT sector was a
contributing factor to 0.4% QOQ growth in the overall Canadian economy in the 2013 Q3 (figure 2).
Growth in the overall Canadian economy was 1.5% in the third quarter of 2013 compared to the third
quarter in 2012, and 3.1% compared to the third quarter in 2011.
1
2
In 2007 chained dollars. Chained dollars are real dollar amounts adjusted for inflation.
GDP figures for 2013 Q3 are calculated using July 2013 data only, due to lag associated with availability of output data.
Strengthening Canada’s Digital Advantage: Fall 2013
Page | 1
Figure 2. Quarterly growth of GDP — 2011 Q3 to 2013 Q3
Canada
ICT sector
1.1%
0.2%
2013 Q3
2012 Q4
2012 Q3
2012 Q2
2012 Q1
2011 Q4
2011 Q3
-0.2%
0.3%
0.3%
0.1%
2013 Q2
0.4%
2013 Q1
0.5%
-0.7%
Source: ICTC; Statistics Canada
Provincial comparison
Ontario is Canada’s ICT leader and contributed $31.7 billion to the total Canadian ICT output in 2013 Q3
(figure 3). In the same period, other notable ICT output contributors were Quebec ($14.3 billion), Alberta
($8.6 billion), British Columbia ($8.5 billion), the Prairie provinces (SK, MB; $3.2 billion), the Atlantic
region (NB, PE, NL; $1.7 billion), and Nova Scotia ($1.4 billion).
Figure 3. ICT sector output by province/region (in billion dollars) – 2013 Q3
31.7
14.3
8.5
8.6
3.2
BC
AB
SK, MB
ON
QC
1.4
1.7
NS
NB, PE, NL
0.2
Territories
Source: ICTC; Statistics Canada
An excellent blend of advanced technological, research and corporate infrastructure means that
Canadian provinces offer unique opportunities and the provincial brands need to be built and promoted
internationally around this theme. Ontario has a very strong and robust financial services sector and
multiple clusters of emerging technologies such as mobile apps development. Similarly, British Columbia
has a thriving forestry sector and Alberta has a rich, burgeoning economy thanks largely to its energy
sector. Agriculture is a critical sector for the Prairie provinces (SK and MB); manufacturing and forestry
are both important for Quebec and digital media is emerging as a significant contributor to the Atlantic
region. Companies in these growth sectors and ICT stakeholders need to go beyond traditional
partnerships and partner with each other to scale up to reach bigger global markets. Industry and
policymakers need to devise a strategy and take an active part in showcasing their products and services
Strengthening Canada’s Digital Advantage: Fall 2013
Page | 2
internationally. Promotional activities need to go beyond highlighting available technology and promote
the amazing skills and talent available in the provinces.
While it is imperative to have policy support for growth as outlined in the final section of this issue of
SCDA, it is also critical to note that removing policy frictions will be an important factor to attract
businesses as well. In a highly competitive environment where various jurisdictions are competing with
one another, economic activities will naturally migrate to jurisdictions that have the fewest policy frictions.
For instance, unduly onerous privacy legislation might encourage an ICT service provider to move and
operate in a different jurisdiction.
Labour market trends
Employment level and joblessness
773,000 ICT workers were employed in 2013 Q3, decreasing significantly (32,000) compared to 2013
Q2. The jobless rate increased as a result from 3.2% in 2013 Q2 to 3.5% in 2013 Q3 (figure 4).
Non-ICT workers employed in the ICT sector are key contributors to its growth and are included in our
overall consideration of Canada’s digital economy. Employment among these workers increased
marginally in 2013 Q3 to 280,000 (2,000) from 278,000 in 2013 Q2.
The net effect of a sizable decrease in ICT employment throughout the economy and marginal increase in
non-ICT employment in the ICT sector was that employment in Canada’s digital economy in 2013 Q3
declined by 30,000 () compared to the previous quarter, bringing the employment level in Canada’s
digital economy to 1,053,000.
Figure 4. Employment in Canada’s digital economy — 2012 Q3 to 2013 Q3
ICT jobs in all sectors
Non-ICT jobs in ICT sector
783,000
764,000
ICT joblessness
805,000
802,000
773,000
3.2%
2.8%
2.6%
2.4%
320,000
2012 Q3
306,000
2012 Q4
3.5%
277,000
2013 Q1
278,000
2013 Q2
280,000
2013 Q3
Source: ICTC; Statistics Canada
All sectors of the Canadian economy employ ICTs to boost productivity and efficiency. In 2013 Q3, the
Canadian economy experienced a 1.3% () annual growth in employment. In comparison, ICT
employment grew by 1.2% () between the third quarters of 2012 and 2013. We consider that, as a
leading indicator, this growth is encouraging for the health of the overall economy.
Strengthening Canada’s Digital Advantage: Fall 2013
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Provincial comparison
Ontario is Canada’s largest ICT employer and employs 343,000 (44%) of all such workers in Canada. By
comparison, ICT employment is 199,000 (26%) in Quebec, 90,000 (12%) in British Columbia, 73,000
(9%) in Alberta, 32,000 (4%) in the Prairie provinces (SK and MB), 22,000 (3%) in the Atlantic region (NB,
PE and NL), and 15,000 (2%) in Nova Scotia (figure 5).
Figure 5. ICT employment by province/region — 2013 Q1
ICT jobs
Female share of ICT jobs
32%
27%
27%
26%
23%
26%
23%
19%
90,000
73,000
32,000
343,000
199,000
15,000
22,000
773,000
BC
AB
SK, MB
ON
QC
NS
NB, PE, NL
Canada
Source: ICTC; Statistics Canada
Women in ICT
32% of Alberta’s ICT workers are women—a marked improvement—compared to 27% in Ontario and
Nova Scotia, 26% in British Columbia, 23% in Quebec and in the Atlantic region (NB, PE and NL), and
19% in the Prairie provinces (SK and MB) (figure 5). The number of women employed in ICT occupations
grew by 27,000 in 2013 Q3 compared to a year ago—a 16% () YOY growth (figure 6). Overall, 198,000
women were employed in ICT occupations in this quarter. In contrast, the employment of men in core ICT
jobs decreased compared to a year ago (3%). Growth in the employment of women in ICT jobs has
been greater than that of men for three consecutive quarters, an encouraging sign for workplace diversity.
Figure 6. ICT employment by gender
Women in ICT jobs
Men in ICT jobs
602,000
593,000
597,000
591,000
575,000
171,000
192,000
200,000
208,000
198,000
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
Source: ICTC; Statistics Canada
Strengthening Canada’s Digital Advantage: Fall 2013
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Youth in ICT
Employment in ICT occupations among those aged 25 or younger saw a marginal quarterly decrease
(1,000) in 2013 Q3 (figure 7). That level is 7% higher than a year ago in 2012 Q3. And yet, only 6% of
all ICT jobs are held by these youth currently, compared to 15% of the jobs held by youth below 25 in the
overall economy.
Figure 7. Youth employment in ICT — 2012 Q3 to 2013 Q3
All ages
Under 25
805,000
802,000
783,000
764,000
Share of under 25 to total
773,000
6%
6%
6%
6%
5%
49,000
48,000
2013 Q3
2013 Q1
2013 Q2
45,000
40,000
2012 Q4
2012 Q3
45,000
Source: ICTC; Statistics Canada
The jobless rate among those aged 25 or younger in Canada is 13.4% at present. In ICT occupations,
joblessness among this age group is an infinitely lower 4.0%. In fact, the difference in joblessness in ICT
and the overall economy among all age groups is marked.
Figure 8. Joblessness by age group — 2013 Q3
Canada
ICT jobs
13.4%
6.2%
7.1%
5.9%
4.7%
4.0%
3.5%
2.7%
Under 25
25 to 44
45 to 64
All ages
Source: ICTC; Statistics Canada
Strengthening Canada’s Digital Advantage: Fall 2013
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Immigrants in ICT
Of the total employed workers in core ICT occupations in 2013 Q3, 278,000 (36%) were immigrants—
down sharply on the quarter (7.3%). Nevertheless, jobs that have a strong emphasis of technical
skills—for instance software programming or web development—are easier for new and arriving
Canadians to find, as these skills are easily transferable and highly in demand. The proportion of
immigrants has been consistent in recent quarters at marginally above a third of the ICT workforce (figure
9). This is in sharp contrast with the overall economy, where 24% of all jobs are held by immigrants. This
we consider as evidence of an overall demand for skilled ICT workers throughout the economy.
Figure 9. Immigrant employment – 2012 Q1 to 2013 Q1
Immigrants in ICT jobs
Immigrant share of ICT jobs
38%
36%
Immigrant share of all jobs
37%
36%
36%
300,000
292,000
288,000
282,000
278,000
23%
23%
23%
24%
24%
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
Source: ICTC; Statistics Canada
Job growth
Notwithstanding occasional slumps, demand for ICT skills is robust in general and demand for specific
skills rises and falls in cyclical fashion. In the third quarter of 2013, the following ICT occupations
witnessed the highest quarterly increases in the respective provinces/regions, in line with ICTC’s Outlook
for Human Resources in the ICT Labour Market, 2011–2016:
British Columbia
The following ICT occupations witnessed the highest quarterly increase:



informatics / business systems analysts (3,000)
technical support analysts (2,000)
electronics technicians (1,400)
Alberta
The following ICT occupations witnessed the highest quarterly increase:



Information systems / IT managers (1,100)
telecommunications services/operations/facilities managers (1,100)
electronics technicians (1,000)
Strengthening Canada’s Digital Advantage: Fall 2013
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Manitoba and Saskatchewan
The following ICT occupations witnessed the highest quarterly increase:



electronics technicians (2,000)
technical support analysts (1,700)
software / GUI developers (1,400)
Ontario
The following ICT occupations witnessed the highest quarterly increase:



software testers / systems technicians (3,000)
Information systems / IT managers (2,200)
electronics and electrical engineers (1,900)
Quebec
The following ICT occupations witnessed the highest quarterly increase:



data analytics / database architects/administrators (2,000)
software / GUI developers (1,300)
software designers/engineers (800)
Nova Scotia
The following ICT occupations witnessed the highest quarterly increase:



system administrators / network technicians (700)
web developers (600)
electronics technicians (500)
New Brunswick, Prince Edward Island and Newfoundland and Labrador
The following ICT occupations witnessed the highest quarterly increase:



Information systems / IT managers (1,300)
technical support analysts (1,100)
electronics technicians (800)
Strengthening Canada’s Digital Advantage: Fall 2013
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Demand and supply of skills
ICT employment outlook
Traditionally the digital economy and the overall Canadian labour markets gain momentum as the holiday
season nears. The final quarter of the year will likely see a recovery of lost jobs.
Industries outside the ICT sector (e.g. forestry, financial services, healthcare, education and public
administration) are major users of ICT products and services in Canada. These industries’ need for top
ICT talent continues to grow and has resulted in expanding career options for ICT-trained workers,
placing competitive pressure on the employers seeking technical ICT talent.
As a result, it is a good time to be job hunting in the core ICT occupations in Canada. Based on active
vacancies posted on jobsites, employment growth in late-2013 is expected to be the highest for the
following occupations:

software designers/engineers

graphical user interface (GUI) developers

mobile application developers

technical support analysts

software developers

application programmers

animation programmers

electronics technicians

multimedia/graphic designers/illustrators

informatics / business systems analysts

IT/ICT analysts

web developers

information systems / IT managers

computer / network systems engineers

network support technicians/administrators
Strengthening Canada’s Digital Advantage: Fall 2013
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Changing business practices and the labour market
The last few years have seen tremendous growth in consumer and business adoption of digital platforms.
The emergence of digital platforms such as Facebook, Twitter, Netflix, Instagram, and YouTube has
created incremental economic opportunities. ICTC’s proprietary methodologies, a survey of 300
enterprises, and in-depth consultation with Canadian employers gives a good basis to quantify the gain in
employment creation, efficiency gain, cost reduction, revenue generation, collaboration, and innovation
for Canadian enterprises in all sectors of the economy.
Digital platforms are broader than just social media. They include any platform that enables sharing oneto-many (for instance Netflix), or many-to-many (for instance YouTube or WebEx). For its study, then,
ICTC has adopted a broad definition of digital platforms that includes social media such as Twitter,
Facebook, LinkedIn, or Reddit; dynamic platforms featuring user-generated content such as YouTube or
iTunes; meeting applications such as WebEx, FuzeBox, or GoToMeeting; curated content sources such
as Slideshare or Pinterest; digital applications such as Instagram, and more.
Digital platforms have overcome many previous limitations on sharing, communicating, disseminating,
and broadcasting digital content. These platforms offer new channels and avenues for businesses to
reach clients. They provide visibility and relevance to enterprises, and are driving constant change in
business practices in Canada and around the world. As an example, Canada’s federal cabinet changes in
summer 2013 were communicated to Canadians directly using digital platforms (e.g. Twitter).
In the first study of its kind, ICTC estimates that 79,000 Canadians are employed as a result of the
emergence and wide adoption of digital platforms. 68,000 of the current jobs are in enterprises that are
utilizing digital platforms to gain efficiencies in their business practices, while 11,000 of the jobs are in
companies that are providing digital platforms services. Up to 22,000 new digital platforms jobs are
expected to be created between now and 2018. The total employment in the digital platforms segment will
exceed 101,000 as a result.
The geographic composition of the total employment – including service providers and users of digital
platforms – is as follows: Ontario (34,000), Quebec (18,000), British Columbia (12,000), Alberta (8,000),
the Atlantic region (4,000), and Saskatchewan and Manitoba (3,000).
The Canadian digital platforms ecosystem currently contributes approximately $7.3 billion annually to
Canadian GDP, estimated to reach $14.8 billion by 2018. 75% of Canadian businesses employ at least
one segment of digital platforms for sharing, communicating, disseminating, and broadcasting purposes.
Adoption of digital platforms across the provinces varies, however. 71% of enterprises in the Atlantic
region utilize digital platforms for business purposes; the corresponding ratio is 78% in British Columbia.
Of the $7.3 billion that Canadian digital platforms ecosystem presently contributes to GDP, Canadian
service providers contribute $1.3 billion. Revenues generated by service providers are estimated to
increase 17% annually. For the majority of Canadian service providers, digital platforms are not their
exclusive business focus. On average, revenues from digital platform streams constitute a quarter (24%)
of their total revenues.
There is a key role to be played by adopters, service providers, educators, and policymakers in ensuring
that digital platforms support Canadian prosperity. This original research study delves into the actions that
will benefit all stakeholders and is available for free here.
Strengthening Canada’s Digital Advantage: Fall 2013
Page | 9
Latest policy and industry developments
Deloitte partners
Centre4Growth
with
British
Columbia
Technology
Industry
Association’s
(BCTIA)
Deloitte, a professional services firm, has signed on as a Champion Partner of the BCTIA Center4Growth
program. Through this partnership, Deloitte will help support the growth of BC technology companies by
making their vast industry expertise, expert teams, and unique connections available to Centre4Growth
executives and entrepreneurs. (...more details here).
New technology, better and faster access to government data
The British Columbia government recently launched iMapBC 2.0, an upgraded version of its popular
online mapping toolkit that will provide improved access to thousands of geographical datasets. (...more
details here).
Calgary Council for Advanced Technology (CCAT) announces $300,000 grant from Status of
Women Canada
The Calgary Council for Advanced Technology (CCAT), a not-for-profit association, announced today that
it has been awarded $300,000 in funding from Status of Women Canada to create and deliver a three
year project that furthers the advancement of Women in Technology. (...more details here).
Alberta ICT Association appoints a President
The Alberta ICT Association has appointed Drew McNaughton to the position of President. This position
was created to prime the implementation of a new strategic direction for the organization. (…more details
here).
Wavefront and TRTech offer Prairie provinces’ wireless companies a competitive edge
The Government of Canada is providing financial assistance to help wireless SMEs in Manitoba,
Saskatchewan, and Alberta. (...more details here).
Provincial government announces $10 million for Parkland Trades and Technology Centre
Premier Brad Wall has announced that the Saskatchewan Government is providing $10 million in funding
to support construction of a new Trades and Technology Centre at Parkland Regional College in Yorkton.
(...more details here).
Communitech selected to join Google Tech Hub Network
Waterloo-based Communitech became part of an exclusive Google for Entrepreneurs Tech Hub Network.
Comprised of seven hubs throughout North America, the network will support entrepreneurs and provide
a stimulus for local economies. (…more details here).
Strengthening Canada’s Digital Advantage: Fall 2013
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Ontario, Canada recognized as a global leader in knowledge-based industries
Area Development magazine, an executive resource covering corporate site selection and relocation,
recently recognized Ontario, Canada as a global leader in innovative high-tech sectors, including IT and
life sciences (...more details here).
New voucher helps Ontario companies find e-commerce solutions
Up to 100 Ontario companies, working through one of nine colleges, will receive $2,500 each to build or
enhance their online business presence under a new program administered by Ontario Centres of
Excellence. (...more details here).
The Quebec Technology Association (AQT) launches its Center for Growth
The Centre for Growth will offer a new range of services designed for Quebec ICT entrepreneurs seeking
to accelerate their companies' growth. (...more details here).
Quebec government invests $373 million in video game industry
Ubisoft will be expanding operations in Quebec, investing $373 Million and creating 500 new jobs over
the next seven years. (...more details here). Click here for the French-only press release.
Blackberry shutting down Halifax offices in early 2014
BlackBerry Ltd. is shutting a site in Bedford, N.S., laying off more than 350 people and returning $2million the provincial government paid to the company this year to support its BlackBerry 10 platform.
(...more details here).
Digital Nova Scotia connecting with Halifax Blackberry employees affected by layoffs
Digital Nova Scotia has been in contact with BlackBerry to help ensure that employees affected by the
company’s shutdown in Halifax have opportunities to find rewarding positions in Nova Scotia’s growing
ICT sector. (...more details here).
Cyberbullying Investigation Unit begins helping youth, families
Nova Scotia has launched the country’s first cyberbullying investigative unit, CyberSCAN. As of Sept. 30,
2013, youth and their families can contact this unit for help and information about cyberbullying. (...more
details here).
Mariner to create 60 IT jobs with $750K in payroll rebate
The New Brunswick government is investing up to $750,000 toward an expansion project at Mariner
Partners Inc., creating 60 new information and communications technology jobs over three years. (...more
details).
eForcePEI partnership provides business with free online learning
A new partnership between Holland College, the Government of Prince Edward Island, and Bluedrop
Performance Learning will allow Island businesses to benefit from 2,000 free, online professional
development course bundles. (...more details here).
Strengthening Canada’s Digital Advantage: Fall 2013
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Key takeaways
…Industry

No industry or sector can ignore adoption of enabling technologies, as digital platforms, cloud
services, and mobile technologies enable companies to be more efficient and productive in a cost
effective way. ICTC’s recent original and pioneering research outlines the benefits that these
enabling technologies can provide. As well, developers and service providers in the enabling
technologies space are experiencing sizable growth. The opportunity to pursue new markets with
products and services that are user friendly, easily adopted, and highly scalable will create further
growth outside of the traditional technology verticals, particularly in micro (less than 5 employees)
and small (less than 10 employees) enterprises that comprise 75% of Canada’s total businesses.

Strengthening all employees’ capacities to function in a connected and digital workplace is crucial.
Not all employees may embrace ICTs adoption due to lack of understanding or skills. Canada’s
digital economy is experiencing a high level of skill shortages. Companies need to look critically at
their skill requirements in the short and medium term, and plan accordingly. Up-skilling of their
existing workforce for growth areas, strategic hiring of recent “nearly” qualified graduates with
effective on-boarding plans, and tapping into available skilled labour pools such as Internationally
Educated Professionals (IEPs) are all required if companies want to remain competitive in such
tight labour market conditions.
…Post-secondary education institutions

What industry looks for in terms of skills and what Canada’s post-secondary system is currently
producing is not in proper sync. The gap cannot be addressed by either industry or the postsecondary system acting in isolation. Many universities and colleges have introduced programs
that combine ICT with other fields. To ensure that their programs are reflective of the changing
industry demands and their graduates are fully equipped and prepared to fill these needs,
educators need to revisit the model they have been working with to find out about the labour
market realities, as this model has clearly not been working as well as expected. Active networking
with industry is much needed, and this can be accomplished by organizing career days and expos,
and inviting non-academia subject matter experts and industry leaders to speak with tomorrow’s
jobseekers to keep them encouraged and motivated.

In addition, educators require the assistance of a real-time tool to forecast skills needs of tomorrow
at the national and regional levels so that they can modify their curricula faster—despite the long
lead time required to create new academic programs—to address employers’ needs and offer
integrated, hybrid programs in timely fashion. Post-secondary schools also need to work with high
schools and policymakers to communicate to prospective students new or modified program
options and the careers to which those lead.

Bridge-to-work programs (coops, internships, mentorships) that provide students with hands on
experience are increasingly critical for the labour market success of new graduates. Industry
expects graduates that can contribute to the business with minimal on-boarding. Enrolment in ICT
related programs will increase if students know that they will be able to gain practical hands-on
experience as part of their program that will lead to employment. Post-secondary institutions need
to increase their networking with industry - including career days, expos, industry leading guest
speakers in order to keep students encouraged and motivated. Schools need to focus on “career
Strengthening Canada’s Digital Advantage: Fall 2013
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pathing” in order to communicate to students how the programs and program options fit into an
overall career plan in ICT.

In an ever-increasing global marketplace Canadian employers are realizing the importance of
having employees with broad horizons and are actively looking to arrange international
assignments for them to learn and grow. Canadian educators can integrate international exchange
programs and work terms in their programs that will create more attractive graduates for
employers, likely increase enrolments and improve labour market success for the students.
…Policymakers

If corporate tax credits are tied to labour market practices to encourage focused (e.g. youth,
women, immigrants) hiring, service providers will have both incentives and means to provide
training opportunities to staff so they may upgrade their skills—a once common practice that has
regressed since the onset of the recession. For instance, Ontario Media Development Corporation
(OMDC) provides a refundable tax credit to eligible creative media industries to support hiring,
marketing, and content distribution expenses. Many of Ontario’s creative media enterprises are
recipient of this tax credit and find it very useful for increasing profitability and thus growth. In a
recent ICTC survey, 42% of the enterprises appreciate most the fact that this credit reduces theirs
operational costs, 33% recognize that it encourages productivity growth and innovation, while 17%
report the credit advantageous for hiring, increasing revenues, and boosting profit purposes.
Similarly, tax incentives provided in regards to innovation through the Scientific Research and
Experimental Development (SR&ED) Tax Incentive Program ensures that when tax credits are
factored in, $100 R&D expenditure can be reduced to an after-tax cost of less than $44 for a large
enterprise and less than $38 for a small enterprise. These are excellent models that can be
researched further and piloted in other industrial segments.

Keeping on top of Canada’s dynamic digital economy is critical for policymakers at the federal,
provincial and municipal levels. Regular, proactive communications between industry, industry
associations, and policymakers will ensure that policy creation and revisions support the
ecosystem necessary for Canadian companies to grow and remain competitive globally. The
federal government has shown strong intentions to work with provinces and territories on a new
generation of labour market agreements to more effectively connect Canadians to employers and
in-demand jobs. This should be pursued without delay.

The economic benefit of programs such as IRAP, SRED, and CareerConnect for companies in the
ICT sector has been demonstrated. To get the best value out of these programs and stimulate the
growth of this high-contributing sector it is critical that more small to medium sized companies are:

aware of the programs available to them, and

that the application process and administration is as simple as possible.
Awareness raising and simplification of processes are particularly important in light of the fact that
in a recent ICTC survey, a quarter (25%) of Ontario’s mobile apps enterprises report not knowing of
the OMDC tax credit program discussed above despite eligibility, while another 25% do not apply
due to reasons such as a lengthy process, onerous, or ineligibility. Awareness campaigns through
social media and other digital platforms will help with increasing eligible applicants, while allowing
submission of applications through mobile apps and other technologies will resonate well with
today’s entrepreneurs and their employees and potentially simplify the application process.
Strengthening Canada’s Digital Advantage: Fall 2013
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
Policymakers need to play a pivotal role to support nascent ICT service providers, who are
endowed with significant growth potential, especially given the low barriers to entry and existence
of strong infrastructure. The ICT sector’s contribution to Canada’s GDP has grown 9% over the last
4 years. This growth is projected to increase year-over-year so it is critical for policymakers to
continue supporting and developing policies that strengthen companies in high growth markets. In
spite of sharp growth in recent years, a recent ICTC survey reveals that a quarter (26%) of
Ontario’s micro and SMEs are seeking funding to grow their operations and finding it challenging.
The biggest obstacle to funding is to showcase credibility, as a majority of the enterprises have
small or no assets to pledge as collateral. Access-to-capital issues are pervasive across Canada
and bridging the gap from angel investment or venture capital is a persistent challenge. It is
important for policymakers to recognize the role that small companies play in the innovation cycle
and assist them overcome various challenges; increased competiveness and job creation will
result.
Strengthening Canada’s Digital Advantage: Fall 2013
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About ICTC
The Information and Communications Technology Council (ICTC) is a leading not-for-profit national
centre of expertise conducting research, policy development, and creating talent solutions for the digital
economy.
For more information about ICTC services, please contact:
Jeff Leiper
Vice President
Strategic Research, Policy & Communications
613.868.2375 | j.leiper@ictc-ctic.ca
Twitter @ICTC_CTIC
Strengthening Canada’s Digital Advantage: Fall 2013
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Digital economy labour force
ICTC’s LMI captures critical economic and labour market indicators to inform competitive business and
human resource strategy planning, decision-making and career development in ICT, thereby driving the
development of a more prosperous Canadian ICT workforce and industry in a global digital economy.
The table below summarizes the core ICT occupations. The sum total of workers (workers that are
employed in these occupations as well as workers that are currently unemployed, but actively looking for
work) in these occupations and workers in all other (non-ICT) occupations in the ICT sector (ICTC’s
framework of Canada’s ICT sector is explained below) is the total digital economy labour force in Canada:
Index
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
NOC Code
0131
0213
6115
2133
2147
21711
21712
21713
21714
21721
21722
2173
21741
21742
2175
2241
22811
22812
2282
2283
51212
5224
5224
Occupation Title
Telecommunication Carrier Managers
Computer and Information System Managers
e-Commerce Managers
Electrical and Electronics Engineers
Computer Engineers
Information Systems Business Analysts
Systems Security Analysts
Information Systems Quality Assurance Analysts
Systems Auditors
Database Administrators
Database Administration Analysts
Software Engineers
Computer Programmers
Interactive Media Developers
Web Designers and Developers
Electrical and Electronics Engineering Technologists and Technicians
Computer Network Technicians
Web Technicians
User Support Technicians
Systems Testing Technicians
Technical Writers
Broadcast Technicians
Graphic Designers and Illustrators
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ICT sector
The table below summarizes the ICT sector:
Index
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
NAICS Code
3333
3341
3342
3343
3344
3345
4173
5112
5171
5172
5174
5179
5182
5415
8112
ICT Sub-sector
Commercial & Service Industry Mach. Manuf.
Computer & Peripheral Equip. Manuf.
Communications Equip. Manuf.
Audio & Video Equip. Manuf.
Semiconductor & Other Electronic Component Manuf.
Navigational, Medical & Control Instruments Manuf.
Computer & Comm. Equip. & Supplies Wholesale distribution
Software Publishers
Wired Telecommunications Carrier
Wired Telecommunications Carrier (except satellite)
Satellite Telecommunications
Other Telecommunications
Data Processing, Hosting, and Related Services
Computer Systems Design & Related Serv.
Electronic & Precision Equip. Repair & Maintenance
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