Ministry of Finance
Backgrounder
November 26, 2015
Fostering a More Innovative and Dynamic Business
Environment
2015 Budget Commitment
Impact
Ontario is fostering a more innovative and
dynamic environment for businesses to grow
and succeed by helping innovative small
businesses access capital, reducing the cost of
doing business, leveraging strategic investments
and promoting global trade opportunities.
Helping Ontario businesses grow and succeed
creates rewarding, high-paying jobs and contributes
to economic prosperity.
The government is committed to accelerating Ontario’s economic growth by
helping successful firms scale up into leaders, using the entrepreneurial drive
and know-how of people and businesses, and modernizing the regulatory
system so that it keeps pace with innovation and technological change.
Progress Report
Reducing the Cost of Doing Business
Ontario is well ahead of its annual targets for reducing the cost of doing business. Ontario’s first
annual report on reducing red tape for business, released in June, showed savings of $50 million and
2.4 million hours for businesses in the last four years.
The government expanded eligible participation in the Industrial Conservation Initiative (ICI), which
encourages reduced electricity use during peak hours, saving money for the entire electricity
system. Since July 1, the expanded ICI program has helped nearly 280 of Ontario’s largest
energy consumers save an average of about 25 per cent on their electricity bills.
The government has introduced legislation that, if passed, would remove the Debt Retirement
Charge for commercial, industrial and other non-residential electricity users on April 1, 2018, nine
months earlier than previously estimated. This will save a typical large industrial company about
seven per cent, a large northern industrial company more than eight per cent and a small business
about four per cent on their electricity bills.
For more information, refer to the 2015 Ontario Economic Outlook and Fiscal Review
Chapter I, Section A: Fostering a More Innovative and Dynamic Business Environment, pages 3-17
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Building Ontario Up — Progress for Prosperity
Accelerating Ontario’s Economic Growth
Ontario’s growth agenda is based on fostering an innovative and dynamic business climate. To that end,
the government is launching the Business Growth Initiative, a bold new plan that will focus on:
Promoting the scaling up and growth of successful Ontario firms to become global leaders in
key markets.
Advancing an innovation-driven, knowledge-based economy, to enhance Ontario’s
competitive advantage.
Modernizing the regulatory system to reduce administrative burden and lower the cost of
doing business.
Leveraging Business Investment through Strategic Partnerships
Project commitments by the Jobs and Prosperity Fund to date will support the creation and
retention of more than 14,000 jobs, attracting business investment of more than $900 million to
the province.
Helping Innovative Small Businesses Succeed and Grow
In July, the Northleaf Venture Catalyst Fund announced that it had met its fundraising target,
reaching the maximum size of $300 million, with two-thirds of the fund’s commitments coming from
private partners.
The government announced in April that it will invest in Scale Up Ventures, a new venture capital
fund targeting early-stage Ontario companies. The new $50 million fund will include up to $25
million from the Province, which will be matched by private-sector partners.
Providing Support for Research and Innovation
Ontario is providing up to $209 million to support 280 world-class research and critical research
infrastructure projects in universities and health institutions across the province.
The government is helping Ontario’s automotive sector become a global leader in innovation by
pledging $500,000 to the Ontario Centres of Excellence Connected Vehicle/Automated Vehicle
Program, in addition to the $2.45 million in recently provided funding.
In October, the government announced a new pilot program that will enable Ontario to become the
first province to allow the testing of automated vehicles and related technology on-road. Starting on
January 1, 2016, the pilot will enable the nearly 100 companies and institutions involved in Ontario’s
connected and automated vehicle industry to conduct research and development in Ontario and
help bring automated vehicles to market.
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2015 Ontario Economic Outlook and Fiscal Review
Helping Business Go Global
The government’s Going Global Trade Strategy helps Ontario firms compete and become more
productive by learning about foreign opportunities and changing markets.
In September, Minister of Finance Charles Sousa travelled to China and Japan to meet with leaders
in the financial services, banking and manufacturing sectors to promote Ontario as a favourable
investment destination.
Premier Kathleen Wynne led trade missions to California and China in November. The Premier and
delegations signed more than 100 agreements and Memoranda of Understanding, with an
estimated total value of $2.5 billion. The agreements are expected to create 1,700 jobs in Ontario.
Ontario is working with the federal government to negotiate and implement important new trade
agreements to open and grow export markets, while addressing the sensitivities of key Ontario
sectors such as agriculture and auto.
Supporting the Sharing Economy
Ontario is committed to supporting the sharing economy, to harness the opportunities it presents,
while protecting Ontario consumers and workers. This is an emerging sector that has immense
potential to foster economic growth and innovation.
In October, the Province established a Sharing Economy Advisory Committee to oversee the
government’s approach to this emerging sector and harness the opportunities it presents.
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