Canada boasts of one of the fastest-growing tech sectors in the world. An influx of investments and talent has seen Toronto, Montreal, Vancouver, and Ottawa emerge as a tech hub in North America. Amidst the growth, the digital divide between Canadian cities threatens to widen, as investments remain focused on a few cities.
Digital Divide
A new report by TD Bank warns that the digital divide threatens to leave smaller cities struggling. The clustering of high paying jobs in a few select cities has seen smaller cities fall short of the much-needed talent and investments to spur innovations. The clamoring of high paying tech jobs select cities also threatens to create huge wage inequality, as is the case in the U.S.
For the longest time, the U.S has struggled with inequality in the labor market on the concentration of skilled digital jobs in select locales such as Silicon Valley. Canada is slowly falling into the trap. As it stands, the four largest cities currently account for about 70% of all digital services in the country. In contrast, in 2005, the cities experienced job growth increase at the same rate as the rest of the country.
However, according to the TD report geographic concentration of high paying tech jobs might not be as dramatic in Canada as is the case in the U.S. The lack of regional inequality is an edge that should continue to work in favor of Canada in ensuring a spread of high paying tech jobs across the country. Canada boasts of broader sectors that continue to support the tech industry. For instance, Finance, real estate, construction, as well as healthcare and warehousing continue to offer exciting employment opportunities with better benefits away from the tech industry.
However, should the other sectors not grow at the same rate as the tech industry, then Canada stands to plummet into the regional inequality dilemma. The fact that the four largest cities play host to highly qualified tech workers supported by cheap real estate means tech industry in the cities could grow much faster than the other industries.
One of the touted ways to counter the inequality debacle includes the teaching of technology and other computer literacy course to kids at an early age. There are also calls to strengthen the relationship between tech firm’s universities and the government. Amidst the inequality debacle, the Canadian tech industry continues to offer exciting investment opportunities
Top Canadian Tech Stocks
Maxar Technologies Inc. (TSX:MAXR) has emerged as an ideal pick for gaining exposure in the country’s burgeoning tech sector. The stock is up by more than 100% for the year on the company establishing itself in the tech industry on signing lucrative U.S defense contracts. The company is making a name for itself in offering satellite imagery services and other solutions.
BlackBerry Ltd (TSX:BB) has picked itself nicely after coming under immense pressure in the smartphone business. The Company has established itself in the Canadian tech industry thanks to increased commercial adoption of its enterprise mobility software as well as security systems. While the stock has pulled lower in recent weeks, the pullback provides an opportunity to buy the stock at a discount.
Tucows Inc. (TSX:TC) sums up the top three companies to watch out for investment opportunities in the Canadian tech industry. The company is making a name for itself in offering domain registration platform as well as mobile and wireless services. The company currently offers fiber internet connections to select U.S markets.
