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CANADA ’ S TECH SECTOR FUELS GROWTH ACROSS THE ECONOMY
Canada ’ s tech sector is driving growth across the economy , with one in three ( 30 %) small and medium-sized businesses planning to invest in software in the next 12 months , according to a new BDC study .
Entitled Tech Industry Outlook : What ’ s Next for the Technology Sector in Canada , the tech sector is a key pillar of Canada ’ s economy , driving growth across sectors and helping make other industries more productive . Products and services from the tech sector will fuel much of the innovation and productivity that will power economic growth in the next decades . Over the next 12 months , 52 % of Canadian businesses plan to buy intangible assets , such as software , intellectual property ( IP ) protection , R & D and marketing and employee training .
“ With a robust financing ecosystem , one of the world ’ s most highly educated workforces and a wealth of passionate entrepreneurs , Canada ’ s tech businesses are well-positioned to capitalise on these opportunities ,” said Pierre Cléroux , BDC ’ s Vice President , Research and Chief Economist .
Mergers and acquisitions ( M & As ) have rebounded quickly following the waves of the pandemic , especially in the tech sector where deal-making has been happening at a record pace since the beginning of the year . The main reason for purchasing a business ( 70 %) is to acquire technology and intellectual property ( IP ).
“ Tech companies that have made acquisitions in the previous 10 years are three times more likely than their peers to have experienced annual sales growth of 5 % or more over the past year ,” added Cléroux .
Along with a growing need for skilled workers , the study notes three key trends to watch for :
1 . A booming market for mergers and acquisitions 2 . A focus on cybersecurity to secure online contracts and data 3 . Transitioning to a ‘ X-as-a-Service ’ model ( XaaS ), delivering technology products and tools as services to users over the Internet
BDC ’ s Tech outlook provides insights into the industry ’ s prospects for 2022 and addresses how to navigate a rapidly changing environment . Entrepreneurs can find advice on how to effectively complete a tech acquisition , alleviate the ongoing labour shortage , obtain their security certification , or implement a disruptive business model for high growth . �
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