the ontario technology corridor advantage. 2 london niagara region london niagara

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The Ontario Technology Corridor Advantage

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Page 1: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

The Ontario Technology Corridor Advantage

Page 2: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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London

Niagara Region

LondonNiagara

Page 3: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 4: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 5: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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GTA ~ London ~ Niagara ~ Ottawa ~ WaterlooNiagara Region

Population

:

427,421

Companies: 200

Workforce: 800

Page 6: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 8: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 9: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 11: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 12: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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!

Page 13: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 14: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 16: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 18: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 19: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 22: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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Stable ~ Safe ~ Affordable ~ Cosmopolitan

Excellent culture and sports facilities

Page 23: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

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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

Page 26: The Ontario Technology Corridor Advantage. 2 London Niagara Region London Niagara

www.ontariotechnologycorridor.com