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The Ontario Technology Corridor Advantage
2
London
Niagara Region
LondonNiagara
3
GTA ~ London ~ Niagara ~ Ottawa ~ Waterloo
Population
:
5.5 million
Companies: 3,300+
Workforce: 148,000
Greater Toronto Area and Ottawa Region
Population
:
1.3 million
Companies: 1800
Workforce: 82,000
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GTA ~ London ~ Niagara ~ Ottawa ~ WaterlooWaterloo Region and City of London
Population
:
450,000
Companies: 400
Workforce: 10,000
Population
:
500,000
Companies: 400
Workforce: 15,000
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GTA ~ London ~ Niagara ~ Ottawa ~ WaterlooNiagara Region
Population
:
427,421
Companies: 200
Workforce: 800
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Top 10 reasons to invest in Ontario
1) Stable, highly talented, motivated workforce2) Access to the North American market (NAFTA)3) Openness to diversity and multiculturalism4) Economic engine of Canada5) World class research institutions6) Innovation leadership7) Low risk business environment8) Superior infrastructure9) Business incentives10) Quality of life
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55%51% 48%
39%34% 34%
29% 26%22%
48%
OTC Canada Ireland Japan U.S. Austrl. France UK Switz. Germany
% Ontario Population Age 25-64 with Tertiary Level Education
The Ontario Technology Corridor offers one of the world’s most educated populations
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What this
means for
your tech
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
Ontario’s NAFTA advantage
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Openness to diversity and multiculturalism
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The Ontario Technology Corridor represents 90% of the ICT industry in the province. Key Sectors include:software development and services, telecom equipment, digital media, cleantech, microelectronics
Gaming is a key component of the Canadian ICT sector, generating between $1.5 and $2.0 billion in revenues in 2007
Home to over 6,000 ICT companies such as:– GTA: Koei Canada Inc., CapCom Interactive Canada,
Silverbirch– Waterloo: Research in Motion (Blackberry), Sybase, Open
Text– London: Digital Extremes, Big Blue Bubble, Tusk
Interactive – Niagara: Silicon Knights, Centre for Advanced
Visualization– Ottawa: Magmic Games, Adobe Canada, Head Games, IBM,
Fuel Industries, MARS Works, Jaded Pixel, XYG RGB
The Ontario Technology Corridor is the economic engine of Canada
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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 (OCAD) 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
Ontario has world class universities and colleges
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University of Toronto ranked Canada’s top research-intensive university with 6 Nobel Prize-winning graduates
University of Waterloo ranked Canada’s #1 for “Best Overall”, “Most Innovative”, and “Leaders of Tomorrow” comprehensive university in Maclean’s Business Magazine 2007 survey. It is renowned worldwide for its leading computer science, math, and engineering programs
335 patents in 2007, the GTA ranked 15th in the world
RYAN: ACADEMY AWARD® WINNER FOR BEST SHORT ANIMATED FILM (2005)
Ontario – the innovation society!
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Canada’s excellent economic fundamentals and political stability provide a first-rate, low-risk business environment:
A strong fiscal position Canada is experiencing 2nd longest period of
economic expansion in Canadian history, and has been reducing debt at a record rate
Low Inflation and low interest rates Canada’s inflation rate is 1.5% lower than the US
rate Canada’s excellent fiscal situation and low
inflation has led to lower interest rates
A growing domestic economy Canada’s economy is expected to lead the average
growth rate in real GDP among the G-7 nations in 2009
Canada’s real GDP is expected to grow at 1.2% in 2009 while the U.S. will grow at 0.1%
Ontario companies take advantage of Canada’s low-risk business and regulatory environment
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Gateway for international trade
Ottawa Macdonald-Cartier International Airport
Excellent infrastructure for business air travel
Toronto Pearson International Airport
London International Airport
The Region of Waterloo International Airport
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Niagara’s border crossings are amongst the busiest in Canada
Niagara is one of the busiest Canada-U.S. borders
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“The Better Way”
GO Transit is Canada's first, and Ontario's only, interregional public transit system, linking Toronto with the surrounding regions. The GO system carries more than 50 million passengers a year in an extensive network of train and bus services
The Toronto Transit Commission’s (TTC) subway system is linked with buses and streetcars that provides a one fare journey around Toronto, Markham, Richmond Hill, Vaughan, Mississauga, Aurora and Newmarket
The TTC carries approximately 1.5 million riders on an average business day and uses hybrid buses which use less fuel and have lower emissions than traditional diesel-fuel buses
The Corridor is a VIA Rail passenger train service area in the Canadian provinces of Quebec and Ontario
The Corridor service area has the heaviest passenger train frequency in Canada
Ontario enjoys an established mass transit system
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Ontario has the largest and busiest freeway network in Canada, consisting mainly of 400-Series Highways and supplemented by municipal expressways
Ontario’s Road and Rail Network
Highway and rail systems also well developed
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The Ontario Technology network offers:
One of the most extensive telecommunication networks in North America
A highly integrated telecommunications network including:
-The largest “free calling” area in North America (416/647/289/905)
-100% Digital Telecom Infrastructure
-High speed data services
-Internet connectivity
-Private lines
-E-business services
Highly integrated telecommunication networks
Highly integrated telecommunications network
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G-8’s most favourable tax treatment for R&D
Small Corporations* Ontario* Large Corporations~ Ontario~Federal Tax Savings Federal Tax Savings R&D expenditures 1,000$ R&D expenditures 1,000$ Provincial ITC (149)$ Provincial ITC
851$ 1,000$ Federal ITC @ 35% (468)$ Federal ITC @ 20% (297)$ Federal tax deduction 383$ Federal tax deduction 703$ Federal taxes saved 50$ Federal taxes saved 155$ Provincial Tax Savings Provincial Tax SavingsR&D expenditures 1,000$ R&D expenditures 1,000$ Federal ITC Federal ITCProvincial ITC (149)$ Provincial ITCProvincial tax deduction 851$ Provincial tax deduction 1,000$ Provincial taxes saved 47$ Provincial taxes saved 140$ Total Tax Savings Total Tax SavingsFederal tax savings 518$ Federal tax savings 452$ Provincial tax savings 196$ Provincial tax savings 140$ Total savings 714$ Total savings 592$ Net after-tax cost of R&D 286$ Net after-tax cost of R&D 408$
Net After-Tax Cost of Performing Research & Development
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TAX INCENTIVES CRITERIA HOW MUCH
Next Generation of Jobs Fund
- Companies must help the environment, secure jobs for Ontario, and help establish Ontario as a global leader in an emerging market
- Grants of up to 15% in eligible costs
Ontario Business Research Institute Tax Credit (OBRITC)
- Must incur qualified expenditures in respect of scientific research and experimental development (SR&ED) under an eligible contract with an eligible research institute (ERI)
- 20% refundable tax credit for SR&ED expenditures incurred in Ontario under an eligible contract with an ERI. The maximum amount a corporation can claim is $4 million
Ontario Innovation Tax Credit
- Must carry on eligible SR&ED in Ontario - 10% refundable tax credit for qualifying. Can be combined with OBRITC (above) for a total of 30%
Ontario Research and Development Expenditures Deduction
- Must carry on eligible SR&ED in Ontario - Allows corporations to exclude from Ontario taxable income the portion of federal investment tax credit that relates to qualifying SR&ED expenditures through Ontario pool calculation on CT23 Schedule 161
Ontario R&D incentives at a glance
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Ontario Media Development Corporation (OMDC)
TAX INCENTIVES CRITERIA HOW MUCH
Ontario Computer Animation and 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
- 25% of eligible expenditures; 30% for qualifying small corporations
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 $100,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product
OMDC Video Game Prototype Initiative
- The creation of a prototype in order to secure a publisher or attract financing for a market-ready, commercial video game product
- A repayable contribution of up to $500,000 to a maximum of 50% of eligible expenses for their prototype
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 with respect to an eligible Canadian sound recording by an emerging Canadian artist or group
Digital media incentives in Ontario
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Stable ~ Safe ~ Affordable ~ Cosmopolitan
Excellent culture and sports facilities
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Stable ~ Safe ~ Affordable ~ Cosmopolitan
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
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
Safe, stable, and well governed
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Stable ~ Safe ~ Affordable ~ Cosmopolitan
With low crime, little threat from instability or terrorism and highly developed infrastructure, Canada has the most liveable destinations in the world - Economist Intelligence Unit (EIU)
Great cities and towns offering a great life
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Cost of living survey 2007
OTC
Source: Mercer Human Resource Consulting, 2007
134.4
126.3
122.1
110.2
101.4
100
97.6
95.9
87.1
85.8
84.9
82.5
78.8
Melbourne
Mumbai
Taipai
Los Angeles
Beijing
Rome
New York
Paris
Copenhagen
Tokyo
London
Moscow
Cost Index 100 = U.S. Average
Very affordable cost of living
www.ontariotechnologycorridor.com