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The Ontario Technology Corridor Advantage
Niagara Region
London
London
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Niagara
Greater Toronto Area andGTAOttawa
~ London ~Region
Niagara ~ Ottawa ~ Waterloo
Population:
5.5 million
Companies:
3,300+
Workforce:
148,000
Population:
1.3 million
Companies:
1800
Workforce:
82,000
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Waterloo Region and CityGTA
of~ London
London
~ Niagara ~ Ottawa ~ Waterloo
Population:
500,000
Companies:
400
Workforce:
15,000
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Population:
450,000
Companies:
400
Workforce:
10,000
Niagara Region
Population:
427,421
Companies:
200
Workforce:
800
GTA ~ London ~ Niagara ~ Ottawa ~ Waterloo
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Top 10 reasons to invest in Ontario
1) Stable, highly talented, motivated workforce
2) Access to the 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 life
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The Ontario Technology Corridor offers
one of the world’s most educated populations
% Ontario Population Age 25-64 with
Tertiary Level Education
55%
51%
48%
48%
39%
34%
OTC Canada Ireland Japan
U.S.
34%
Austrl. France
7
29%
UK
26%
22%
Switz. Germany
Ontario’s NAFTA advantage

New market opportunities

New partnerships
What this

New customers
means for

New investors
your tech

New links in supply and
company:
production chains

New choices for consumers

Economic growth

High standards of living
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Openness to diversity and multiculturalism
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The Ontario Technology Corridor
is the economic engine of Canada



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
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Ontario has world class universities and colleges
 University of Waterloo
 Wilfred Laurier University
 Conestoga College
 University of Toronto
 Centennial College
 Ryerson University
 George Brown College
 York University
 Humber College
 Brock University
 Seneca College
 University of Western
Ontario (Western)
 Sheridan College
 University of Ontario
Institute of Technology
 Fanshawe College
 Niagara College
 Durham College
 Ontario College of Art &
Design (OCAD)
 Algonquin College
 Carleton University
 La Cité collégiale
 University of Ottawa
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Ontario – the innovation society!

University of Toronto
ranked Canada’s top researchintensive 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)
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Ontario companies take advantage of Canada’s
low-risk business and regulatory environment
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%
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Excellent infrastructure for business air travel
Toronto Pearson
International Airport
Ottawa Macdonald-Cartier
International Airport
London
International Airport
The Region of Waterloo
International Airport
Gateway for international trade
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Niagara is one of the busiest Canada-U.S. borders
Niagara’s border crossings are amongst the busiest in Canada
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Ontario enjoys an established mass transit system
“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 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
 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
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Highway and rail systems also well developed
Ontario’s Road and Rail Network
Ontario has the largest and busiest
freeway network in Canada,
consisting mainly of 400-Series
Highways and supplemented by
municipal expressways
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Highly integrated telecommunications network
Highly integrated telecommunication networks
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
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G-8’s most favourable tax treatment for R&D
Net After-Tax Cost of Performing Research & Development
Small Corporations*
Ontario*
Large Corporations~
Federal Tax Savings
Federal Tax Savings
R&D expenditures
$ 1,000
R&D expenditures
Provincial ITC
$ (149)
Provincial ITC
$
851
Federal ITC @ 35%
$ (468)
Federal ITC @ 20%
Federal tax deduction
$
383
Federal tax deduction
Federal taxes saved
$
50
Federal taxes saved
Provincial Tax Savings
Provincial Tax Savings
R&D expenditures
$ 1,000
R&D expenditures
Federal ITC
Federal ITC
Provincial ITC
$ (149)
Provincial ITC
Provincial tax deduction
$
851
Provincial tax deduction
Provincial taxes saved
$
47
Provincial taxes saved
Total Tax Savings
Total Tax Savings
Federal tax savings
$
518
Federal tax savings
Provincial tax savings
$
196
Provincial tax savings
Total savings
$
714
Total savings
Net after-tax cost of R&D
$
286
Net after-tax cost of R&D
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Ontario~
$ 1,000
$ 1,000
$ (297)
$
703
$
155
$ 1,000
$ 1,000
$
140
$
$
$
$
452
140
592
408
Ontario R&D incentives at a glance
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
Ontario Research and
Development
Expenditures Deduction
- Must carry on eligible SR&ED in Ontario
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- 10% refundable tax credit for qualifying. Can be
combined with OBRITC (above) for a total of 30%
- 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
Digital media incentives in Ontario
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
- 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 marketready, 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
expenditures and eligible marketing
and distribution expenses claimed with
respect to interactive digital media products
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Excellent culture and sports facilities
Stable ~ Safe ~ Affordable ~ Cosmopolitan
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Safe, stable, and well governed
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
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Great cities and towns offering a great life
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)
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Very affordable cost of living
Cost of living survey 2007
78.8
OTC
Cost Index 100 = U.S. Average
82.5
Melbourne
Mumbai
84.9
Taipai
85.8
Los Angeles
87.1
95.9
Beijing
97.6
Rome
100
New York
101.4
Paris
110.2
Copenhagen
122.1
Tokyo
126.3
London
134.4
Moscow
Source: Mercer Human Resource Consulting, 2007
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