the ontario technology corridor advantage for ict and digital media march 2013

The Ontario Technology Corridor advantage for ICT and Digital Media

March 2013

www.ontariotechcorridor.ca

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Welcome to the Ontario Technology Corridor

If you are part of an Information and Communications Technology (ICT) or Digital Media company seeking to expand or relocate, you need to consider Ontario, home to Canada’s largest ICT cluster and North America’s gateway to innovation. Ontario offers:

Why the Ontario Technology Corridor?

• A deep talent base

• Excellent growth opportunities

• A low-risk business environment

• Generous targeted tax credits

• A strategic geographic location

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The Ontario Technology Corridorgenerates 48% of Canada’s ICT revenues

• 270,000 work in Ontario’s 18,000 ICT companies

• This includes 2,600 who work in Ontario’s 96 video game development companies

• Ontario is the Canadian province with the largest number of video game companies

• Ontario’s video game industry is growing at 21% – the fastest pace in the country

• Ontario leads the charge for Canada’s claim as one of the top three countries in the worldwide gaming industry

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A two-hour flight from many major U.S. cities

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Zoom in on the Ontario Technology Corridor

Top 10 reasons to invest in Ontario

1. Stable, highly talented, motivated workforce

2. Access to entire 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

10.Quality of life6


Ontario offers one of the World’s most educated populations

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% Population Age 25-64 with Tertiary Level Education

Also, according to the Swiss-based International Institutefor Management Development, Canada has the highest numberof qualified engineers in the G7.

Ontario has 44 world class universities and colleges – Canada’s largest talent pool

• 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 University• Carleton University• University of Ottawa

• Conestoga College • Centennial College• George Brown College • Humber College• Seneca College • Sheridan College• Niagara College • Fanshawe College • Durham College• Algonquin College• La Cité collégiale• Stratford Institute

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Ontario’s internationally respected education system includes over 400 registered private career colleges, 20 public universities and 24 colleges. Among these are:

Ontario is rapidly expanding digital media related programs

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Program type

CollegeAnimationGamingGraphic designFilmComputer softwareComputer engineering

UniversityComputer science and engineering

GRAND TOTAL (2012)

Number of programs

332237126658

308

536

(In 2008 the total number of programs was 174)

Ontario – the innovation society!

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• Toronto: Ryerson University’s Digital Media Zone in its first two years fostered 45 companies and 438 jobs

• Ottawa: Algonquin College in cooperation with Carleton University offers Interactive Multimedia and Design (IMD), a 4 year degree program

• Waterloo Region: Communitech HUB, the provincially funded ($26 million) Ontario Centre of Excellence for Digital Media

• London: Digital Interactive & Gaming (DIG London), an annual conference for Ontario’s gaming network

The Ontario Technology Corridor is the economic engine of Canada

• Key Sectors include: software development and services, telecommunications equipment, digital media, video gaming, microelectronics

• Ontario generates generates 37% of the national GDP and is home to almost 50% of all employees in high tech, financial services and other knowledge-intensive industries

• In 2013, Canada is expected to have the fastest economic growth among G7 countries

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Ontario is home to the world’s best

• Greater Toronto Area: Ubisoft, Cisco Systems, IBM, Arc Productions, Semtech, Polar Mobile, 360 Incentives

• Ottawa: Fuel Industries Inc., Magmic Inc., bitHeads Inc., which includes HeadGames and Playbrains Inc.

• Waterloo Region: Blackberry, Open Text Corp., Google Inc., SAP Canada Inc., Electronic Arts Inc. (EA)

• London: Digital Extremes Ltd., Big Blue Bubble Inc., Antic Entertainment Inc.

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Canada – a sound choice for new investment and trade

• Foreign Direct Investment (FDI) into Canada has more than doubled in the past decade

• In 2013 the combined federal-provincial general corporate income tax rate averages 26% – 13% less than average U.S. rate

• Canada is an aggressive trading nation – a growing list of recent trade agreements represent the most ambitious trade expansion plan in Canadian history

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Canada has a low-risk business and regulatory environment

Canada also has:

• World’s soundest banking system (5 years in a row)

• Lowest taxes on new business investment in the G7

• Average business costs are significantly lower than in any other G7 country – 14.9% lower than U.S. average

And:

• It takes only one procedure and five days to register a new company in Canada

• UK-based Reputation Institute ranks Canada #1, two years in a row

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Ontario offers highly favourable tax treatments for R&D

• In Ontario a broader range of costs qualify for deductions than in many jurisdictions

• When tax credits are factored in, $100 in R&D expenditures can be reduced to an after-tax cost of $57 or $39 for small businesses

• Canada enjoys the lowest costs in the G7 for R&D intensive sectors, with up to a 10.7% advantage over the U.S.

• Five of the world’s biggest ICT firms conduct R&D in Ontario: GE, Siemens, Intel, Cisco and IBM

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Ontario’s digital media incentivesand targeted tax credits include:

• Ontario Innovation Tax Credit

• Ontario Research & Development Tax Credit

• Ontario Computer Animation & Special Effects Tax Credit

• Ontario Interactive Digital Media Tax Credit

• OMDC Interactive Digital Media Fund

• OMDC Ontario Sound Recording Tax Credit

More information at www.ontariotechcorridor.ca

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Examples: Ontario digital media incentives

SUPPORTPROGRAMS/INCENTIVES

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

40% of eligible labour, marketing and distribution expenditures

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 $150,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product

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 for production and marketing costs with respect to an eligible Canadian sound recording

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Ontario’s NAFTA advantage

What this

means for

your company:

• 460 million people in North America’s $17.9 trillion market

• Either preferential (reduced) or eliminated tariff rates for North American goods traded between Canada, the U.S. and Mexico

• Protection of investment and intellectual property (IP) laws and regulations are enforced equally among all trading partners

• Skilled ICT suppliers

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Ontario’s NAFTA advantage


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What this

means for

your company:

• New market opportunities

• New partnerships

• New customers

• New investors

• New links in supply and production chains

• New choices for consumers

• Economic growth

• High standards of living

Excellent infrastructure of international airports

• Toronto Pearson

• Toronto Billy Bishop City

• Ottawa Macdonald-Cartier

• Region of Waterloo

• London

• St. Catharines/Niagara District

• Hamilton John Munro

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Ontario – international destination, world class convention facilities

• Ottawa Convention Centre – 192,000 square feet of usable space, a bold, modern design

• University of Waterloo Conference Centre

• Metro Toronto Convention Centre and The International Centre, adjacent to the airport

• London Convention Centre – tiered 300 seat theatre

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Well developed highway, rail, and shipping

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• Largest and busiest freeway network in Canada

• Efficient 400-series highways and municipal expressways

• Ports connect major manufacturing, processing, transportation services and logistics expertise

Established mass transit system

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• GO Transit interregional public transit system carries 50 million/passengers/year

• The Corridor, a VIA Rail passenger train service area

• The Toronto Transit Commission’s (TTC) subway system, linked with buses, hybrid buses and streetcars carries ~ 1.6 million riders/day

Highly integrated telecommunications network

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• One of the most extensive and integrated telecommunication networks in North America

• The largest “free calling” area in North America

• 100% Digital Telecom Infrastructure

• High speed data services

• Internet connectivity

• E-business services

Ontario has one of the busiest Canada-U.S. borders

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• 2nd busiest point of entry between Canada and the U.S., the world’s largest trading relationship

• Four efficient bridges for U.S. border crossings

• The Welland Canal offers direct shipping access from the Atlantic Ocean

Openness to diversity and multiculturalism

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Excellent culture and sports facilities

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Very high quality of life

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Safe, stable, and well governed

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• 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

Ontario cities and towns offer a superior lifestyle

Canada has the most liveable destinations in the world! Economist Intelligence Unit (EIU)

• Low crime

• Highly stable

• Highly developed infrastructure

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The Ontario Technology Corridor advantage for Digital Media and ICT

March 2013

www.ontariotechcorridor.ca

the ontario technology corridor advantage for ict and digital media march 2013

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