A Profile of the Mississauga Information and Communications Technologies Sector. focus
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1 A Profile of the Mississauga Information and Communications Technologies Sector focus
2 Accelerating Technology In a knowledge-based economy, the links between economic success and education are integral. We recognize that the ability to draw on a pool of employees with the necessary skills to help ICT companies compete globally, is a prime concern. That s why in Mississauga, we continuously champion efforts to intensify innovative activity. To support businesses in the IT, advanced manufacturing and biotechnology industries, we became a partner in the Mississauga Technology Business Accelerator (MTBA). This centre of innovation enables entrepreneurs to accelerate their businesses in a collaborative environment, with ready access to business, professional and academic resources. Our commitment toward this goal is clear. This is demonstrated by our actions, such as a City investment in support of the Communication, Culture and Information Technology (CCIT) program at the University of Toronto at Mississauga (UTM) campus. The CCIT facility offers an interdisciplinary program for the study of the art and science of human communication. Mississauga s goal is to facilitate an ever increasing number of partnerships between ICT companies and universities. These partnerships have the potential to create new and thriving research facilities and highly-skilled employees. These employees are drawn from one of the most highly-educated and best supported workforces in the world: over 82% of Mississauga s resident workforce has post secondary education. We have ten major universities and eleven technical colleges within commuting distance. The innovation flowing from our thriving ICT companies plays a key role in the prosperity achieved by other Mississauga-based companies. It has long been recognized that the ICT sector is an enabling industry; helping other industries perform better by providing the tools to enhance the manufacturing, delivery, sales and customer service processes. Our ICT Community Mississauga s ICT cluster is home to many of the world s leading companies, including: Accenture Inc. Acer America Corporation (Canada) ADP Canada Allstream Inc. Avotus Corp. Bell Canada Bioscrypt Inc. C G I Information Systems CANCOM Canadian Satellite Communications Inc. Canon Canada Inc. Cedara Software Corp. Certicom Corp. Computer Associates Canada Ltd. Computer Horizons Canada Corp. Creation Technologies Inc. Financial Models Company Inc. Fujitsu Canada Inc. G E Information Technology Solutions Hewlett-Packard (Canada) Ltd. I M A X Corp. Ingram Micro MediSolution Inc. Microsoft Canada Co. NEC Canada, Inc. NetSuite, Inc. NexInnovations Inc. Oracle Corporation Canada Inc. Pitney Bowes Psion Teklogix Inc. Rand, A Technology Corp. Redknee Inc Satyam Computer Services Ltd. SGI Canada Siemens Business Services Canada Inc. Software Spectrum Canada Ltd. Symcor Inc. Tata Consultancy Services Tech Data Canada Inc. VONAGE Canada Xerox Research Centre of Canada
3 Compelling Incentives for Research and Development ICT companies in Ontario benefit from some of the most generous R&D incentives in the world. Through federal and provincial tax incentives and credits, R&D performers earn a tax credit on every dollar spent on eligible R&D, including capital equipment and overhead. Together, these incentives can stretch research dollars by 20% to 50%. R&D incentive highlights: Provincial and federal tax credits can cut the after-tax cost of a $100 R&D expenditure to $40.24 A 100% deduction of all eligible R&D costs, including capital equipment; R&D deductions can be carried forward indefinitely A 20% investment tax credit on scientific research and experimental development expenditures For small-sized, Canadian controlled private corporations, the investment tax credit increases from 20% to 35% - on as much as the first $2 million of R&D The investment tax credit can offset 100% of the federal tax payable in the year, or can be carried back 3 years or forward 10 years The Ontario government has earmarked $230 million for R&D for , to be matched by a further $345 million in federal government and private sector funding An Ontario corporation can claim tax incentives even if its R&D costs are covered, in whole or in part, by a foreign corporation or government It s clear: Federal and provincial incentives are spurring performance. R&D expenditures in the City of Mississauga approached $1 billion in As part of the GTA, we are in the midst of a critical mass of research activity; we attract the best and brightest minds from all over the world.
4 Our Strategic Location The ICT sector benefits from Mississauga's location in the heart of Canada s major consumer and industrial market. As Canada s 6th largest city, with a population of 695,000, we are strategically located in the hub of Ontario s thriving Greater Toronto Area (GTA). We offer direct access to North America s vast, and quickly growing, 420 million consumer base. Mississauga works hard to build and foster a vibrant business community: we maintain low costs for property taxes, services and utilities. These costs are noticeably competitive, ranking among the lowest of the major cities in Canada. We have the room to accommodate growing businesses. Competitive lease rates and land prices for high-quality industrial land and buildings, here in the heart of the GTA, are key reasons for Mississauga s ICT sector growth. With more than 3,000 acres of available land for business development in 50 private sector parks, Mississauga offers many location choices. We are able to sustain further business influx, facilitating increased business-to-business opportunities. Mississauga s efficient, and easily navigated public transit system provides companies with access to a highly-skilled and educated labour force of 2.9 million employees from across the GTA. Mississauga alone employs more than 410,000 people. We are located at the centre of one of the most important - and accessible - transportation hubs in North America. Mississauga is home to Lester B. Pearson International Airport - our business community enjoys ready access to the largest and busiest airport in Canada; and is serviced by seven major highways. In driving time, we are only 90 minutes from the U.S. border and part of the thriving North American Free Trade Market. Our proximity to the U.S. provides a shared time zone, and reduced cost of time and travel for outsourcing and delivery, as compared to overseas ventures. Mississauga s Business Community: Convergence of Ideas Our 49,000-strong business community is diverse and includes many Fortune 500 headquarters and leading clusters in the automotive, biotechnology, financial services, information and communications technologies, and aerospace sectors. For the ICT community, this diversity offers potential for ongoing convergence of ideas and resources. We are also home to Canada s third largest Financial, Insurance and Real Estate (FIRE) cluster. Our location, adjacent to the financial capital of Canada, allows for easy access to various venture capital and other financing options that invest in ICT sector firms and spin-off businesses. In addition, the ICT sector benefits from Mississauga s well-spread and highly-developed telecommunications network and infrastructure. Existing fibre optic networks service all business parks, and offer bandwidth scalability on a simplified service portfolio. Mississauga is well covered by several wireless service providers, offering 100% integrated voice and data network services.
5 Number of Employees Mississauga s ICT Cluster: Rapid Growth and Success The dynamics of our extraordinary environment and business community has spurred exceptional growth in the ICT sector in Mississauga. The Mississauga ICT cluster is the fourth largest in Canada. We are an integral part of the Greater Toronto Area (GTA) ICT community, which - including Mississauga - consists of the largest ICT cluster in Canada. We rank among the largest such clusters in North America. Number of Companies Toronto Ottawa Our ICT sector is experiencing rapid growth: currently, more than 3,900 ICT companies are located in Mississauga. Since 1996, the Mississauga ICT sector has added an average of 2,594 jobs per annum, growing from 16,265 in 1996 to over 37,000 in 2004, an increase of approximately 128% over 8 years. The sector s positive contribution to the Mississauga region is highlighted by its 2004 GDP contribution of an estimated $4.87 billion. 2,687 Telecommunication 12,586 6,540 ICT EMPLOYMENT GROWTH BY SUB-SECTOR ,401 5,201 Development 11, Manufacturing 8,154 3,872 Services TOP 10 ICT CLUSTERS IN CANADA Calgary 5,660 Mississauga 3,912 Montreal 3,882 Markham 2,731 Vancouver 2,730 Source: Canadian Business Patterns, December 2004, Statistics Canada *Canada s Technology Triangle includes the cities of Kitchener, Waterloo, and Cambridge 4,587 3,536 Wholesale 6,352 16,265 Total 37,016 Source: Extrapolated data based on Statistics Canada, Canadian Business Patterns and City of Mississauga s Employment Database for the respective years. Edmonton 2,158 Canada s Technology Triangle 1,208 The strong and expanding Mississauga ICT sector allows for sharing of resources and ongoing opportunities for convergence. The Mississauga ICT cluster continues to be a major catalyst for growth, powering advances in all sectors and synergies for further innovation. Winnipeg 986
6 Mississauga s dynamic ICT cluster is a thriving sector, which benefits from: Compelling R&D Incentives Thriving Business and Educational Partnerships Choice of Locations Competitive Costs Highly-Skilled Labour Force Strategic Location with Ready Access to Consumer and Industrial Markets Convergence of Ideas and Resources within an Innovative Environment A Profile of the Mississauga Information and Communications Technologies Sector focus Come, be a part of our growing ICT sector. Experience the spirit of innovation. Contact the Business Experts Economic Development City of Mississauga 300 City Centre Drive Mississauga ON L5B 3C1 Tel: Fax: For more information about Mississauga's Information and Communications Technologies sector, take a look at our comprehensive study, Mississauga: A Leading Canadian ICT Cluster, available on-line. 05/225
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