As we gaze into the bright future of Canada, some defining trends are coming into focus. Among these is the substantial rise in the country’s population over the next 20 years. According to Statistics Canada, Canada’s population is currently approximately 40 million, and is poised to cross the 50-million mark by 2043. 

This demographic shift, driven by a combination of natural growth and immigration, is expected to have ripple effects throughout the nation’s economic landscape as well. Three sectors in particular, stand poised to reap the benefits of these developments: technology, life sciences, and agriculture.

Ontario’s Technology Industry

Ontario boasts one of North America’s largest tech hubs. It’s a province where industry powerhouses such as Amazon, IBM, Google, Cisco, and Shopify grow alongside tech startups like Wave, Wealthsimple, Applyboard, Wattpad, Ecobee, Ritual, and more. 

IT, AI, Cleantech, and Fintech are amongst the booming tech sub-sectors.

• IT: Ontario’s IT sector contributes $48.3B to the GDP annually, with $8.3B in IT related exports. The province is home to over 25000 tech companies.
• AI: Canada is the first country in the world to adopt a national strategy for artificial intelligence. The province of Ontario has the largest number of AI firms in Canada – over 361 pure-play firms, while the Greater Toronto Area (GTA) alone has the world’s densest cluster of 273 AI start-ups.
• CleanTech: Ontario ranks #1 as the largest Cleantech sector in Canada. The province contributes CA $25.2B to Canada’s GDP. Ontario is specifically renowned for its pursuit of clean water. Ontario is home to 5000 clean tech companies, out of which 5 made it to the world’s Top 100 CleanTech Companies. 
• Fintech: Ontario is a pivotal hub for fintech startups with 64% of Canada’s fintech firms being based in the province. In 2021 alone, 25 of the firms from the Deloitte Canadian Technology Fast 50 were from Ontario, with 5 of these being prominent fintech companies.

The tech industry in Ontario is mostly centred around the Toronto, Waterloo and Ottawa regions creating an unparalleled concentration of tech workers. Tech job creation in Toronto outpaces the Bay Area, Seattle, and New York City combined. 48% of Canada’s IT workers are in Ontario, and the province adds 63,500 new STEM grads to the workforce every single year.

Government Incentives to Help Your Tech Business Grow in Ontario

• Ontario Vehicle Innovation Network
• Critical Technology Initiatives
• Ontario Emerging Technologies Fund 
• Ontario Innovation Tax Credit 
• Ontario Research Fund 
• Government of Canada Strategic Innovation Fund 
• Government of Canada Scientific Research and Experimental Development 
• National Research Council of Canada Industrial Research Assistance Program (IRAP)

Ontario’s Agriculture Industry

Ontario’s agriculture industry is an essential pillar of its economy. This sector encompasses firms that cultivate crops and rear animals, including managing farms, orchards, greenhouses, and ranches. In 2021, this sector provided employment for 67,400 individuals, making up nearly 1% of the province’s workforce and injected a robust $9.2 billion into Ontario’s economy. This signifies a growth of 9.0% from the previous year.

Ontario stands tall in the national agricultural business. It has the highest number of farms and farm operators across the country and ranks second in farm operating revenues. The province leads the production of soybean, corn, and greenhouse products. As per the latest census, Ontario is home to 48,346 farms, with the most dominant presence in the oilseed, grain, beef, and dairy sectors. 

As the population increases in Canada, Ontario is primed to benefit and thrive. The trends that are taking over the agriculture industry are Agritech, Sustainable Agriculture, and related sub-sector Food and Beverage Manufacturing.

• Agritech: Over 54% of Ontario’s farms already use technology to improve farming efficiency, making it the perfect playground for agritech innovation and commercialization. A 2021 study also reported that Ontario is home to a majority (33%) of the agritech companies in Canada, making it the largest ecosystem within Canada.
• Sustainable Agriculture: Farmers in Ontario are recognized for their dedication to sustainable agricultural practices. Canada’s Sustainable Agriculture Strategy (SAS) further propels the agenda to focus on five priority issues — soil health, adaptation and resilience, water, climate change mitigation, and biodiversity.
• Food and Beverage Manufacturing: Ontario’s food and beverage manufacturing sector is the third-largest in North America. Ontario’s food and beverage processing industry represents 37% of the nation’s total industry revenue, home to 4,000 entities, and employing over 125,000 individuals.

Government Incentives to Help Your Agriculture Business Grow in Ontario

• Ontario Agri-food Research Initiative
• Canadian Agricultural Partnership
• OMAFRA–University of Guelph Research Partnership
• Eastern Ontario Development Fund
• Southwestern Ontario Development Fund
• Northern Ontario Heritage Fund Corporation – Northern Business Opportunity Program
• FedNor: Business Growth and Competitiveness
• Dairy – Canadian Dairy Commission
• Industrial Research Assistance Program
• Saveonenergy
• Ontario Business Research Institute Tax Credit
• Scientific Research and Experimental Development Tax Incentive Program

Ontario’s Life Sciences Industry

Ontario’s life sciences sector is thriving, spanning fields from medical device development, pharmaceutical research, to biotechnological advancements. Ontario has 1,900 life sciences firms (more than any other province in Canada), employing 70,100 individuals and contributing an annual revenue of CA $65.2 billion. Interestingly, pharmaceutical companies alone spearhead CA $45.4 billion in revenue and employ over 32,400 professionals. 

Ontario possesses a synergistic ecosystem that enables businesses to go from research to commercialization with ease. With a network of hospitals, research centres, universities, technology incubators, startups, renowned scientists, and multinational corporations, collaborations in Ontario are driving innovation everyday. 

Some of the life science sub-sectors headed towards rapid growth in Ontario are MedTech and Biotech.

• Medtech: Annually, the Ontario medtech sector generates $18.7 billion in revenue. This robust industry also contributes to the economy with impressive yearly exports totaling $2.55 billion. Ontario is also well-known for being an ideal testbed for medtech and clinical trials. Ontario is home to over 4,600 active clinical trials—the highest in Canada, with twice the trials per capita as the U.S. 
• Biotech: Canada has been at the forefront of the global biotech industry for years, making strides in areas such as genomics, stem cell and regenerative medicine, and metabolic disorders like diabetes with the discovery of insulin. Canada has experienced a 77.2% growth in biotech companies in the past two decades, with hundreds of small start-ups working to bring scientific discoveries to market.

Government Incentives to Help Your Life Sciences Business Grow in Ontario

• Venture Capital Catalyst Initiative 
• National Research Council of Canada’s Industrial Research Assistance Program (NRC-IRAP)
• Natural Sciences and Engineering Research Council of Canada’s (NSERC’s) Idea-to-Innovation Grant
• Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
• Ontario Emerging Technologies Fund 
• Ontario Innovation Tax Credit 
• Ontario Research Fund 
• Government of Canada Strategic Innovation Fund 
• MaRS Investment Accelerator Fund (IAF)

Reasons to Consider Business Expansion in Ontario

1. Workforce

Canada’s commitment to fostering talent is reflected in its impressive educational statistics. Canada has the #1 most educated workforce in the world. The OECD highlights that 62% of 25-34-year-olds in Canada possess tertiary education. 

Canada’s welcoming immigration policies have made it a magnet for global talent. Canada ranks #5 in the world for attracting international students.

Additionally, with universities emphasizing practical training and degrees with co-op requirements, Canada ensures its graduates are ready to tackle real-world challenges, making the workforce an attractive pool for businesses.

2. Market Access

Canada’s 15 trade agreements cover markets valued at over US$50 trillion with 1.5 billion consumers, across 51 countries. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).

Your business can access 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario, specifically, has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.

3. Stability

Canada is globally recognized as stable, both economically and politically. Holding the position as the 3rd most stable economy worldwide, Canada has consistently ranked among the top three for Foreign Direct Investment (FDI) confidence for 5 consecutive years and stood fifth in FDI inflows in 2021.

• Fiscal and Political: The country’s strategic economic planning has positioned it at the pinnacle of the G20 in terms of fiscal soundness. Beyond economic fortitude, Canada’s political environment is commendably stable, ranking 2nd in the G7 for both political stability and low corruption, only trailing behind Germany in the latter. 
• Quality of Life: Adding to its appeal is the exceptional quality of life it offers its residents, ranking 3rd out of 80 countries. Safety is paramount here – not only is Canada one of the top 12 safest nations globally, but three of its cities – Calgary, Vancouver, and Toronto – are also hailed as some of the world’s safest.
• Banking: In the banking and investment sector, all of North America’s top six safest banks are Canadian, and these institutions also feature among the top 35 safest banks globally. In essence, Canada’s multifaceted stability, spanning economic, political, financial, and societal aspects, solidifies its reputation as a premier global destination for investment and living.

4. Sustainability

Canada places significant emphasis on sustainability, reflecting its deep-rooted commitment to both its people and the environment. The nation has pledged to utilize advanced technologies and energy systems to achieve net-zero greenhouse gas emissions by 2050.

This commitment to sustainability is evident in its global rankings: Canada is the 2nd-most sought-after country for green energy projects, ranking  4th among G7 nations on the Green Future Index, and is recognized as one of the world’s most sustainable countries.

5. Competitiveness

Canada frequently tops global rankings to have the most conducive business environment in the G20 within the next 5 years. This prestige is built upon a foundation of competitive operating costs and a tax structure that resonates with global investors. 

Canada ranks 1st in the G20 for business operations and economically, it stands as the 2nd most competitive nation in the G20.

Several factors amplify Canada’s competitiveness:

• R&D Incentives: The country is renowned for its substantial R&D tax incentives, making it one of the G7’s most supportive environments for innovation.
• Low Inflation: With the second-lowest inflation rate in the G7, Canada’s economic stability is commendable, even surpassing the average of the OECD nations.
• Tax Advantages: Canadian corporate taxes are not only competitive but also among the G7’s lowest. This favourable tax environment is further enriched by specific benefits like:
•   – Deductions for zero-emission technology manufacturers.
•   – Absence of tariffs on imported manufacturing inputs and machinery.
•   – Tax incentives for research activities by foreign-owned entities.
•   – Tax breaks for businesses venturing into clean technologies.

Ontario’s growth across various sectors highlights its potential as a dynamic hub for business expansion. For businesses and investors eyeing strategic growth, Ontario presents a landscape rich with promise and potential.

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