Ontario’s

iCt industry

Programmed
for
success
F A S T F A C T : The Economist Intelligence Unit (EIU) predicts that Canada will be the
best country in the world to do business between 2005-2008, thanks
to our openness to foreign trade and capital, high-quality infrastructure
and great market opportunities within the North American marketplace.

Every effort has been had to ensure the accuracy of the information in this
publication at the time of writing.
However, the programs referred to and the data cited are subject to change.
All figures are in US dollars unless otherwise noted.
The exchange rate used is based on the Bank of Canada’s annual average for 2004.
Cdn 1.00 = US 0.769
Ontario’s
iCt industry
Table of Contents

The Business Case for Ontario 2

Ontario’s Three High-tech Clusters 4

A Smart, Skilled Workforce 6

An Innovative Environment 9

A Positive Investment Climate 10

A Strategic Location 14

Telecommunications 16

Software and Systems Development 19

Digital Media 20

Microelectronics 22

We Can Help 24

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 F A S T F A C T S : Foreign direct investment in the Canadian ICT sector has increased by
more than 10% a year since 1990.

F A S T F A C T S : The Greater Toronto Area (GTA) is the third-largest ICT cluster in

North America.

The Business CASE for Ontario

Here’s the compressed version We’re Canada’s largest province (our • benefits from the province’s broad
of what you need to know equivalent of a U.S. state): manufacturing base and strong local
about Ontario—and why it’s • our population is 12+ million— and regional markets
the place to be for ICT. 230,000+ work in the ICT industry • sells $40+ billion in products and
• we’re well educated—75% of our services a year.
ICT workforce has a post-secondary
degree Ontario is home to 5,000+ innovative
• we’re competitive in terms of ICT companies, ranging from homegrown
business costs. global giants like Nortel Networks, Mitel
Networks, Cognos, Research in Motion
We’re home to Canada’s corporate and and Open Text to foreign multinationals
banking headquarters, and we have: like IBM, Alcatel, Cisco Systems, Dell,
• the largest number of multinational Ericsson, Microsoft, Siemens, Motorola
operations in Canada and McAfee.
• an economy that’s outpacing that of
There’s no secret to our success. Our ICT
the U.K., France, Germany and Japan
industry is booming thanks to:
• low inflation and low interest rates
• a well-educated and wage-competitive
• a favourable exchange rate.
workforce
• a sophisticated R&D infrastructure
Ontario’s ICT industry:
• a positive investment environment
• includes leaders in every sector,
• a strategic location in the heart of
including telecom equipment, soft-
the North American industry.
ware development and services,
digital media and web, and micro- Bottom line? Ontario is the place to be
electronics, as well as cutting-edge if you’re looking to locate or expand
technologies like VoIP, wireless your business, conduct leading-edge
broadband and photonics R&D or invest in one of the world’s lead-
• is clustered in three main centres: ing ICT industries.
– the Greater Toronto Area (GTA)
– Ottawa
– Waterloo Region

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 Spotlight on… Workstream

Home Depot is a client. So are Eli Lilly, The

Gap, Motorola, Nike, Samsung and Visa. In
fact, Workstream has a client list of 1,000+
North American companies. That’s because
the Ottawa-based company provides enter-
prise workforce management solutions and
services that help companies manage the
entire employee lifecycle—from recruit-
ment to retirement—cost effectively. “No
one is doing what we’re doing,” says CEO
Michael Mullarkey, a Chicago native and for-
mer Sony vice-president who took the helm
at Workstream in 2001, attracted by the
company’s technology. Despite some pres-
sure to relocate offshore, Mullarkey says
the company isn’t moving anywhere. “There
are just too many advantages to being in
Ontario,” he says. “The workforce is first-
class and cost-competitive. The location is
convenient—I can fly out of New York and
be in Ottawa in a couple of hours, compared
to 19 hours for India—and for our clients,
there’s a comfort level in doing business
with an Ontario-based company.”

TCS Americas “The GTA was the logical choice for our first Canadian global development centre. Toronto is the
business and financial centre of the country and it gives us the powerful combination of a highly educated workforce
with the skills we need, an innovative environment, competitive business costs and close cultural and geographic ties
to the U.S. market. It also offers us the advantage of operating in the same time zones as the U.S., which gives our
clients easy access to our centre. Our goal is to be a top 10 global company by the year 2010, and there’s no question
we’re counting on the GTA centre to play a major role in helping us to achieve it.”
Arup Gupta, President

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 Ontario’s
Deliver Powerful Business

1
1
Ottawa
Population: 1.2 million

Number of high-tech companies: 1,600—with particular strength in

2 telecommunications equipment and networking, computer software and
3 photonics

Annual ICT revenues: $10.4 billion

Size of high-tech workforce: 64,500

Big names include: Adobe, Alcatel Canada, Calian Technology, CGI Group,
Cisco, Cognos Inc., Corel, EDS Canada, Hewlett-Packard (Canada) Ltd., JDS
Uniphase, MDS Nordion, Mitel Networks, Mosaid, Nortel Networks (R&D)

Educational institutions include: University of Ottawa, Carleton

University, Algonquin College, and Université du Québec en Outaouais

Technology transfer facilities: University of Ottawa, Carleton University,

National Research Council

Living there: The nation’s capital is a delightful blend of English and

French, historic and modern, ceremonial and casual—and where the motto
is “work hard, play hard.” Ottawa has an active arts and cultural life,
vibrant nightlife and scores of good restaurants, and a short drive from the
city’s centre are an expanse of lakes, hiking and biking paths, and cross-
country and downhill ski trails.

The buzz on Ottawa: "The interesting telecom-based innovations coming

out of Ottawa through the influence of companies like Nortel Networks,
JDS Uniphase, Mitel and others is what put Canada’s ICT industry on
the map, and today two-thirds of U.S. venture capital investment in
Canada goes to Ottawa tech firms. The city has a talented, technically
rich workforce, a growing entrepreneurial environment supported by first-
class universities and a high standard of living—all of which translates
into a great investment location," says Bernhardt Zeisig of VIMAC Ventures
of Boston.

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THREE High-tech Clusters
ADVANTAGES

2 3
GTA WaterlooRegion
Greater Toronto Area

Population: 5.3 million Population: 500,000

Number of high-tech companies: 3,300+—with leaders in every Number of high-tech companies: 400—with particular strength in
sector and national dominance in digital media and Internet software, microelectronics and telecommunications
Annual ICT revenues: $25 billion Annual ICT revenues: $4.6 billion
Size of high-tech workforce: 148,000 Size of high-tech workforce: 15,000
Big names include: Alias, Allstream (formerly AT&T Canada), ATI Big names include: Agfa Healthcare Informatics, ATS Automation
Technologies, Bell Canada, Call-Net Enterprises, Celestica, Cinram, EDS Tooling Systems, Christie Digital, COM DEV International, DALSA,
Canada, HP Canada, Hummingbird Communications, IBM Canada, IMAX, Inscriber Technology, MapleSoft, Open Text, NDI, Research in Motion,
Microsoft Canada, Nortel Networks (world headquarters), Oracle, Rogers Sybase (iAnywhere Solutions) and SiRiFIC Wireless
Communications, Siemens Canada, Telus, Xerox Canada
Educational institutions include: University of Waterloo, Wilfrid
Educational institutions include: University of Toronto, York Laurier University, University of Guelph, Conestoga College Institute of
University, Ryerson Polytechnic University, University of Ontario Technology and Advanced Learning
Institute of Technology, Sheridan College, Seneca College, Centennial
College, Humber Institute of Technology & Advanced Learning, George Technology transfer facilities: Communitech Business Accelerator,
Brown College UW Innovate Inc., University of Waterloo Research + Technology Park
Accelerator
Technology transfer facilities: Innovation Synergy Centre, IBM Centre
for Advanced Studies Living there: Set among rolling hills, with the Grand River running
through it, Waterloo Region has a strong sense of community with a
Living there: The UN has designated Toronto the “world’s most multi- deeply rooted entrepreneurial spirit. Known for its music, theatre and
cultural city.” Toronto has 5,000+ restaurants, a symphony orchestra, art, the area also offers every kind of outdoor activity—hiking, biking,
opera, ballet and theatre, major league hockey, basketball and baseball, boating, camping, fly-fishing—and it’s just an hour from Toronto.
and 20,000 acres of ravines and parks.
The buzz on Waterloo: The Waterloo Region, known as Canada’s
The buzz on Toronto: “The GTA’s position as one of North America’s Technology Triangle, consists of Cambridge, Kitchener and Waterloo.
premier ICT centres will continue to be supported by innovative proj- “The region, with an attractive location, available real estate, excel-
ects, a diverse and flexible economy, a dynamic corporate presence and lent educational establishments and highly educated workforce, has
an educated, technologically savvy and creative workforce. It is this been attracting fast-growth, innovative companies, which, in turn, are
collective infrastructure that will make the GTA’s ICT cluster attractive attracting people. In short, a virtuous circle is in place,” reports the
to global industry players, suppliers and investors and will ensure that Bank of Montreal, which predicts the region will be one of the country’s
it is poised for a new period of growth,” reports E&B Data Inc. growth leaders over the next several years.

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Nuvation “When we decided to expand our design capabilities by establishing a satellite design centre, our
location criteria included a supply of top-tier engineering talent, low business costs and proximity to our San Jose, CA
headquarters and North American customers. The decision was easy because the one place that fit the bill was Waterloo,
Ontario. With over 18,000 highly educated high-tech workers in the region, Waterloo delivers superlative design talent,
highly competitive business costs, a similar culture, language and laws—and an entrepreneurial spirit that matches ours.
Our Waterloo Design Center is a seamless extension of our capabilities and of great value to our clients who are seeking
an alternative to offshoring. We’re confident the Waterloo Design Center will make a major contribution to our continued
success as a leader in Electronic Design Services for the embedded systems industry.”

Chris Hallahan, VP Sales & Marketing

A Smart, SKILLED
The ICT industry demands There are more than 230,000 people What’s more, we produce a steady
highly educated and versatile working directly in our ICT industry, supply of industry-ready workers,
workers—and ours are best and they’re: thanks to a well-established education
in class. They’re a big reason infrastructure that includes:
• well educated, enterprising and
why our industry is thriving
respected for their expertise in high- • 44 universities and colleges with
and recognized the world over
demand areas thousands of students enrolled in
for its expertise in everything
degree and certificate programs in
from business intelligence • clustered in three vibrant centres
computer sciences and engineering
software to wireless voice along a high-tech corridor that runs
and data transmission to from Waterloo to Ottawa • an extensive and focused system of
e-commerce. co-op and internship programs
• wage-competitive—the average sal-
ary for a systems analyst in Ontario • industry participation in shaping
is $54,300 compared to $72,850 in programs
U.S. centres; a telecommunications
specialist in Ontario makes on aver-
age $46,500 compared to $57,000 in
the U.S.

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 Spotlight on… Bell University Laboratories

How do you maintain a leadership position

in communications and networking tech-
nologies? Bell Canada and the University of
Toronto believe they’ve hit on the answer
with the Bell University Laboratories (BUL)
at U of T. Established in 1999, the $30+
million program is a breakthrough model
for collaboration between industry and
academic researchers that identifies emerg-
ing areas, targets key research needs and
technical issues, speeds development of
innovative solutions—and trains a growing
Workforce pool of high-tech talent. Research takes a
collaborative, cross-disciplinary approach
and focuses on emerging wireline and wire-
less communications, e-business, new media,
human- computer interaction, e-health
applications and law and policy. “There’s no
Salaries for ICT Workers are question that the Bell University Laboratories
Substantially Lower in Ontario
2004 salary
project at
Title U.S. Canada U of T has been essential in enabling us
Chief Technology Officer $94,250–149,750 $77,000–105,700 to build multidisciplinary teams to conduct
Programmer/Analyst $50,750–80,250 $39,000–58,800 research at the forefront of information and
Electronic Data Interchange communications technology,” says Dr. John
(EDI) Specialist $53,000–73,500 $41,000–60,000
Challis, U of T’s Vice President Research and
Network Engineer $60,750–86,500 $44,600–62,480
Associate Provost. “BUL also gives U of T a
Source: Robert Half Technology, 2004 Salary Guide
real edge in recruiting the best scholars and
students in this field.” BUL at the University
of Toronto has proved to be so successful
it’s being replicated at other sites across
F A S T F A C T S :
Canada leads the world in Internet adoption by individuals.

Our universities and colleges produce more than 29,000 graduates a year in mathematics, engineering and sciences.

Only one in five ICT workers in Ontario is covered by a collective bargaining agreement.

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 Spotlight on… Xerox Research Centre of Canada

When Xerox established its Research Centre

of Canada (XRCC) in 1974, it charged the
GTA-based facility with the global mission
for materials development. It was a big
responsibility, but XRCC stepped up to the
plate and delivered. With more than 960
patents to its credit—and counting—XRCC
has been a research powerhouse for Xerox.
The centre’s 125 researchers represent just
2.5% of Xerox’s worldwide research staff,
but they hold about 10% of the company’s
patents. “Our success all comes down to
people,” says XRCC Director Hadi Mahabadi,
noting that Xerox is the only company among
its competitors to have a true research
centre in Canada. “We’ve been able to attract
the best scientists and engineers from
Canada and around the world and keep them
here,” he says. “That diversity is a huge
competitive advantage when you’re making
products for the worldwide market.” Adds
More Costs Qualify For Tax Credits In Ontario Dr. Mahabadi, “XRCC is located close to a
number of top-notch universities and we’ve
Ontario United States
Wages and salaries
also benefited from collaborating with them.”
Capital equipment

Materials

Overhead

Contract expenses 65% to 75%

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 F A S T F A C T S : Provincial and federal tax credits can cut the after-tax cost of
a $100 R&D expenditure to $40.24.

The University of Toronto is the most sought-after place to

work for scientific researchers according to The Scientist’s 2004
survey of the best places to work in academia in Europe and
Canada. The survey is based on available funding and lifestyle.

The Ontario government has earmarked an additional $230 mil-

lion for R&D over the next four years and it will be matched by
$345 million in federal government and private sector funding.

An INNOVATIVE Environment
Research and testing are Our R&D infrastructure includes: • companies conducting R&D in
crucial to the successful devel- Ontario earn a tax credit on every
• thousands of researchers at 20
opment and production of ICT dollar they spend on eligible R&D,
universities and 24 colleges conduct-
technologies and products, including capital equipment and
ing research in every area of ICT,
and Ontario provides a huge overhead, neither of which is eligible
including leading-edge technologies
R&D advantage. for U.S. federal tax credits
like photonics, nanotechnology, VoIP
and wireless broadband • R&D deductions can be carried forward
We’ve got innovative minds,
indefinitely
world-class research facilities, • ORION (Ontario Research and
industry-academia collabora- Innovation Optical Network), which • an Ontario corporation can claim
tion, exceptional R&D tax facilitates research among universi- R&D tax incentives even if its R&D
credits—and a government ties, colleges and research centres in costs are covered, in whole or in
that’s making ICT research Ontario, and through connections to part, by a foreign corporation or gov-
and commercialization a CA*net 4, enables collaboration with ernment.
priority. It’s a powerful researchers around the world
What’s more, we’re actively commercial-
combination, as the world’s • Communications and Information izing our groundbreaking science.
leading ICT companies have Technology Ontario (CITO) and We have incubators, research parks and
discovered. Photonics Research Ontario (PRO)— technology transfer offices throughout
divisions of Ontario Centres of the province. And the Ontario govern-
Excellence Inc.—which work with ment has committed an additional
industry and university and college $48+ million over four years to help
research centres to move new prod- public research institutions and
ucts and technologies from the lab researchers attract pre-seed and seed
to the marketplace. investment.
We also offer some of the most generous
R&D incentives in the world:

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 Spotlight on… IBM Toronto Software Lab

In the highly competitive software

development business, innovation and speed-
to- market are critical to success, attributes
the IBM Toronto Software Lab possesses
in spades. A software industry leader, the
Toronto Lab was responsible for 25 software
patents last year alone and contributes to
products that drive more than one-third of
the company’s worldwide software sales. The
$115+ million, 563,000 square foot facility
houses 2,500 top-notch software developers
and engineers who are charged with global A POSITIVE
product missions for DB2 information man-
agement technology, WebSphere tools and
electronic commerce applications, Rational
development tools and Tivoli provisioning Draper Fisher Jurvetson “We’ve
software. The Lab also holds corporate lead- been in business since 1985 and have a global
ership in user-centred design, globalization network of affiliated venture funds with more
and software research collaboration. “The than $3 billion under management, making us a
Toronto Lab develops leading-edge software leader in seed and early-stage venture capital for
that’s ‘made in Canada’ for a global mar- the information technology sector. To my mind,
there’s never been a better time to invest in
ketplace,” says Martin Wildberger, Director,
tech start-ups—and few better places to invest
Toronto Lab and Vice President, Industry
than Ontario. That’s why we recently formed
Solutions, IBM Software Group. “Our success
a partnership with Toronto-based Primaxis
is directly linked to the level of computer Technology Ventures to create a fund targeted
science training and the quality of people at $100 million and focused on start-up stage
we find in Ontario.” high-tech companies. We’re very excited about
this partnership because Ontario is a technology
powerhouse that’s generated a lot of important
advances in information technology, and we’re
confident the province’s high-tech centres will
continue to produce a terrific flow of investment
opportunities.”
Steve Jurvetson, Partner

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Alcatell“Alcatel‘s Canadian operation plays a vital role in our corporate success. Our Ottawa-based headquarters is
home to a team of highly skilled engineers and software designers developing products in critical networking technolo-
gies that are driving a new wave of communication innovation. In addition to telecommunications solutions, Alcatel’s
industry-leading computer-based train control solutions are also developed in Ontario and exported to customers
around the globe. With a world-class talent pool, a competitive cost base and a flexible business environment, Ontario
offers everything that Alcatel needs to compete globally.”

Hubert de Pesquidoux, CEO Alcatel Canada and COC Alcatel North America

Investment Climate
*Ontario is committed to stay- To start with, we’re cost competitive And there’s plenty of venture capi-
ing at the leading edge in when it comes to: tal available through companies
high-demand areas of ICT—and like, Business Development Bank of
• wages and benefits
we’ve taken all the necessary Canada, Covington Capital Corporation,
steps to help companies maxi- • payroll tax rates Edgestone Capital Partners, GrowthWorks
mize their potential. • corporate tax rates and Vengrowth Capital Partners.

• utility costs

• real estate and office leasing.

We also make it possible for companies

to get up and running quickly because
all the necessary infrastructure is in
place—including an unsurpassed telecom
network—and we work hard to fast
track approvals.

F A S T F A C T S :
Ontario’s combined federal and provincial corporate income tax rate is four percentage
points lower than the U.S. average—and capital tax is being phased out.

Total payments for statutory and other benefits are 29% of salary and wages in
Ontario, compared to 32% in the U.S. Lower medical insurance premiums are an
important reason for this.

International firms establishing or expanding operations in Ontario can transfer

key overseas personnel—and spouses can apply for their own work permits.
That’s not possible in many other countries.

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 Spotlight on…Satyam Computer Services Ltd.
For global IT consulting and services
company Satyam Computer Services Ltd.
choosing a site for its Canadian development
centre came down to location, workforce,
cost and opportunity to grow the business.
The fast growing Indian-based company
It’s Easier to Establish a New Business
found what it was looking for in Ontario’s in Ontario, Canada
GTA. “There’s a strong pool of high-tech Japan Number of procedures* 11
Germany 9
talent and resources in southern Ontario,” Italy 9
says Sanjay Tugnait, Satyam Country France 7
U.K. 6
Manager for Canada. “There are excel- U.S. 5
Canada 2
lent engineering schools and a tremendous
amount of migration of talent to the area
from around the world. As well, costs run
about 20% lower than in comparable U.S
* A procedure is defined as any interaction of the company founder with
cities.” Also helping to clinch the deal were external parties, for example government agencies, lawyers, auditors, notaries.

supportive economic development offi- Source: Doing Business in 2005—the World Bank Group, September 2004

cials who helped fast-track the company’s

launch. Satyam opened its state-of-the-art
centre in February 2004, and the company,
whose blue-chip client list already includes
100+ Fortune 500 companies, has ambitious
plans for growth. “Our location will help us Kodiak Venture Partners “The lure is
Ontario’s world-class technology base—especially in
achieve our goals by attracting new clients
such sectors as telecommunications. And there are
in Canada and providing high quality, cost-
other attractions as well, including a highly skilled
effective nearshore services to major clients workforce grown out of such brain trusts as the Nortel
in the U.S.,” says Tugnait. Networks and JDS Uniphase research centres; tax
incentives such as the government’s R&D tax credit,
which gives companies back 30% of the money they
spend on R&D; and a business-friendly legal system.
These qualities, combined with its geographic
proximity to Boston, make Ontario an ideal target
for investing in early state companies.”

Dave Furneaux, Managing General Partner

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 Cisco Systems Canada Co. “Ontario is a world leader in the adoption of advanced technologies
that transform the economy’s ability to communicate and conduct business. Businesses in Ontario are global
leaders fuelled by some of the best computer scientists and engineers in the world coming from Ontario‘s
colleges and universities. The Ontario government is a recognized global innovator in the adoption of
e-Government and it has supported the build-out of a strong network backbone for Ontario’s economy.
A strong technology infrastructure and increasing advanced technology adoption rate make it easier to
streamline and do business effectively in Ontario. Cisco is proud to be an investor, supplier and business
partner in Ontario’s dynamic, growth-oriented economy.”
Terry Walsh, President

Spotlight on… Cloakware Corporation

Cloakware Corporation is riding a booming international market for security software that helps
corporations protect their digital assets. What sets the Ottawa-based firm apart from its com-
petitors is that it offers application security products that enable developers to create software
with built-in security, making it resistant to attack. It’s technology that has captured a Frost
and Sullivan award for innovation—and attracted such demanding clients as the U.S. Air Force
Research Lab. Cloakware President and CEO, Jeff Waxman, an industry veteran recruited from
SilentRunner, a subsidiary of Raytheon Corporation, says it’s no accident Cloakware is located
in Ottawa. “There’s a concentration of security software companies here which gives us access
to highly skilled engineers and sales and marketing people who have experience in global
markets.” There’s also a location factor, he says, that gives Cloakware a major advantage over
California-based developers in terms of market access. “We’re in the same time zone and two
hours by air from business centres in the northeast U.S.—by far the biggest U.S. market—and
we have in-day access to the European market.”

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 A STRATEGIC Location
With the never-ending push to Among our advantages: What’s more:
lower development costs, near-
• we’re part of the huge (420 million • Ontario is a multicultural centre
shoring IT production, services
people), affluent ($12.3 trillion GDP) where people from all the major
and R&D has become a grow-
North American Free Trade region— ethnic backgrounds live and work—
ing trend—and Ontario is the
where products move freely across so no matter where you come
ideal nearshore location.
borders from in the world, you’ll find a
community in Ontario where you’ll
• we operate on Eastern Time—which
feel comfortable
means, at most, a three-hour time
difference with the continental U.S. • we have diverse cultural and recre-
ational amenities—everything from
• we share language and similar business
major league sports and theatre to
culture and ICT laws with the U.S.
pristine lakes and forests.
• our ICT centres are only a two-hour
flight from major U.S. centres like
New York and Boston—and 51⁄2 hours Bottom line? Ontario is uniquely
from San Francisco equipped to meet the needs of the fast-
paced ICT industry. We have the people.
• our advanced telecommunications
The technology. The vision. The location.
infrastructure provides seamless
voice, video and data links with That’s why we’re a hub for ICT—and the
major U.S. carriers—at a substan- place you want to be.
tially lower cost than in the U.S.

• Ontario is Canada’s corporate and

banking headquarters and home to
the Toronto Stock Exchange, the
sixth largest stock exchange in the
world, with a trading volume of
$1 trillion.

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 Toronto

Detroit Boston
Chicago
New York
San Francisco

Atlanta

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TELEcommunications
With new technologies and new Our telecom sector: We have:
markets at stake, companies
• claims world-leading companies, • an advanced, sophisticated domestic
are looking for a competitive
including Alcatel, Cisco Systems, market that spurs development of
edge and astute players know
Mitel Networks, Motorola, Nortel innovative products and services
they can find it in Ontario.
Networks, Research in Motion and
After all, telecommunications • a cutting-edge infrastructure that
Siemens AG—all undisputed leaders
began in Ontario—Alexander enables ICT companies to develop,
in the development and applica-
Graham Bell devised the display and distribute their products
tion of new products, and most with
principle of the telephone and includes:
significant research operations here
in Brantford, Ontario— and • – the Communications Research
we’ve been at the forefront • is a leader in technologies of the Centre Canada (CRC) which develops
of every major technological future, including wireless broadband, and tests new wireless concepts,
advance ever since. mobile data networks, smart anten- prototypes and products and col-
nas, software-defined radio, last-mile laborates with partners around the
solutions and wideband OFDM. world in mobile systems, satellite
communication, digital broadcast-
ing, coding, advanced antenna
systems, broadband access and
network protocols
• – Canada’s National Test Network, the
world’s longest fibre optic network
• – CA*net 4, the world’s premier
advanced all-optical research net-
work.
Ontario and Canada Claim The World’s We’ve got the history. Join us as we take
on the future.
• first commercial telephone system
• longest fibre optic communications network
• first mobile satellite service
• first nation-wide digital data network
• largest contiguous cellular telephone network
• the world’s first national optical Internet

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 Spotlight on… Mitel Networks

“People don’t buy technology just for the sake of buying technology,” says Mitel Networks
CEO Don Smith. “They buy it because it gives them a way to save money or improve effi-
ciency or enhance interaction with others.” It’s that vision that’s made Ottawa-based Mitel
Networks the market leader in voice, video and data convergence over broadband networks.
With close to 2,000 employees—a quarter of whom work in R&D—Mitel’s 300,000 clients
include businesses, organizations and governments in more than 90 countries around the
world. What sets Mitel apart from the competition is its ability to protect its client’s exist-
ing communications investments while seamlessly incorporating a wide range of intuitive
devices and applications that improve their productivity. “We’re constantly innovating
because our success depends on our ability to deliver what our customers want,” says
Smith. “Ontario provides us with a pool of the best and brightest researchers anywhere,
thanks to the province's first-class universities, and the opportunity to work with a world-
leading company in an attractive city like Ottawa helps keep them here.”

F A S T F A C T : Canadians rank third in the world when it comes to high-speed

Internet access, according to a recent report by the Geneva-based
International Telecommunication Union. The ranking is important
because high-speed connections are seen as a key to future sales and
profit growth.

Research in Motionn“Our BlackBerry wireless platform is already used by millions of mobile

professionals, and we compete effectively around the world. Innovation is critical to our success, and
Waterloo, Ontario is a prime location to support our needs. We’re right next door to the University of
Waterloo, one of the world’s finest engineering schools, and close to other universities and colleges that
offer top-ranked business and trade-specific programs. We work closely with all of them to hire talented
and well-educated employees. And because Waterloo offers a superior quality of life, it’s also easier to
grow and retain a workforce here.”
Mike Lazaridis, President and Co-CEO

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 Spotlight on… Certicom

In today’s high-tech world, governments

and corporations are increasingly concerned
about ensuring that their information is
secure—and more and more of them are
turning to Certicom for help. That’s because
Cognos Inc. “We’re the world leader in the Mississauga-based company sets the
business intelligence and performance plan-
standard for cryptography. Its products and
ning software with more than 23,000 customers
in over 135 countries. Our continued success
services are used by more than 300 industry
depends on our ability to stay ahead of the com- leaders, including Motorola, Oracle, Research
petition and that means having a workforce with in Motion, Terayon, Texas Instruments and
the right skills, vision and drive. Ontario—Ottawa Unisys. Certicom’s technology is also used by
in particular—provides us with an exceptional the United States National Security Agency
talent pool of experienced business personnel, (NSA), to protect the U.S. government’s
software engineers and developers, most of them
most sensitive information. A spin-off of
graduates of Ontario’s first-class universities. And
the University of Waterloo, Certicom moved
because Ottawa is also a great place to work and
its headquarters to Silicon Valley in 2000 to
live, we have a real advantage when it comes
to recruiting and keeping talent. Finally, Ottawa grow the business, but by 2002 the company
provides us with a business climate that encour- had moved back to Ontario to improve its
ages innovation and excellence. We sell to the operational efficiencies and take advantage
world, but we’re proud to call Ontario home.” of the province’s lower operating costs. “Our
patented technology has made us a leader
Rob Ashe, President and CEO
in strong, efficient cryptography,” says
President and CEO Ian McKinnon. “Being
headquartered in Mississauga has strength-
ened our ties to the University of Waterloo
and customers like Research in Motion, while
giving us access to some of the world’s best
mathematicians and cryptographers—and
that’s key to our growth strategy.”

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SOFTWARE and SYSTEMS
Development
Success in software and Our software and systems development sector:
systems development depends
• has thousands of world leading firms • has strength in virtually every area,
on innovation and speed-
including subsidiaries of large mul- including:
to-market—and, as global
tinationals like IBM, Microsoft, Cisco – network application and
software leaders know, Ontario
Systems, HP, EDS, and Satyam connectivity
offers the ideal environment
– business intelligence
for success. • Canadian grown companies like
– content and information
Cognos, Corel, Geac Computer Corpora-
management
tion, Open Text and Hummingbird
– enterprise planning solutions
• includes respected, publicly funded – CRM tools
research centres like Communications – security
and Information Technology Ontario – IT services
(CITO), as well as corporate research – graphics and multimedia.
centres like the IBM Toronto
Software Lab and Xerox Research
Centre of Canada Ontario also offers a nearshore advantage
for software and systems developers,
with easy access to the U.S. and similar
business cultures and security.

If you’re looking to locate an innovative

company or partner with an existing
one, Ontario has what you’re looking for.
F A S T F A C T :
For four years running Canada has led the world in e-government
according to global consulting firm Accenture.

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 F A S T F A C T S : In 2003, growth in Canada’s media and entertainment sector led the
world for the third consecutive year, thanks to the country’s appetite
for technology, reports PriceWaterhouseCoopers in its Entertainment
and Media Outlook 2004-2008.

Toronto-based IMAX, whose innovations in film and picture projection

revolutionized giant-screen cinema, won an Oscar for Scientific and
Technical Achievement in 1997.

The Ontario Film and Television Tax Credit refunds 20% of eligible labour
expenditures—which can be claimed up to two years before principal
photography begins.

Digital MEDIA
Digital media draws on the Ontario’s digital media industry:
best from the fields of cre-
• employs more than 5,000 highly
ative content, computing and
talented people
telecommunications. Ontario
excels in all three—which is • has 700+ innovative companies,
why we’ve been a hotbed of including such well-known names as
digital media activity for close Alias, Nelvana, Decode Entertainment
to three decades. and Snap Media

• draws on graduates from world-

renowned institutions like Seneca
College, Sheridan College, Humber
College and George Brown College
• benefits from the province’s educated,
urbanized, multicultural consumers.

If you’re looking to start a digital media

company, partner with one or source
products for distribution, we’re ready
when you are.

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 Spotlight on… Alias

For 20 years, Toronto-based Alias has been the world’s leading innovator in the field of
3D graphics technology. Its Maya 3D animation and effects software is used by all the big
names in the entertainment industry, including Disney, Sony Pictures Imageworks, Industrial
Light & Magic and Pixar, in hundreds of motion pictures from Lord of the Rings: The Two
Towers to Spider Man I and II to Shrek. In fact, Alias was awarded an Oscar in 2002 for the
development of its Maya software. And Alias is just as well known with leading-edge manu-
facturers like AT&T, Boeing, BMW, General Motors and Kodak. That’s because its cutting-edge
StudioTools software integrates the design process from concept through to manufactur-
ing, helping companies design better products and bring them to market faster. Why does
Alias make its home in Toronto? “It’s ideal for us,” says President Doug Walker. “Toronto is
a media-rich city with a deep pool of talented, educated graduates from some of the most
advanced animation and engineering schools in the world. It’s also a beautiful and affordable
city, so it’s easy to keep the talent here.”

DECODE Entertainment Inc..“DECODE

is recognized around the world as an innovative and
creative television and interactive production company.
We specialize in children’s and youth programming,
a highly competitive market, and we have become
a sought-after international partner for myriad proj-
ects with clients like the Cartoon Network, Disney,
Nickelodeon and MTV. Our success is due, in large
part, to our location in Toronto. Ontario has made a
significant investment in media-related education and
R&D with the result that the province—particularly
Toronto—has become a centre for film and television
production, with a critical mass of uniquely qualified
creative and production people to draw on. Toronto
also offers a quality of life that makes it possible for
us to attract—and keep—the talented people who
make our award-winning programs.”

Steven DeNure, Partner

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 Spotlight on… Zarlink Semiconductor

Zarlink Semiconductor is proof positive that

you don’t have to be big to be brilliant.
Established in the early 1970s, the Ottawa-
based company employs just 1,000 people
worldwide, including 250 at its headquar-
ters, but Zarlink has made quite a name
for itself. Zarlink’s original focus—and
still a main source of revenue—is network
communications. The company has also
branched out to design chips for consumer
electronics, such as digital televisions and MICRO
set-top boxes, and its ultra low-power chips
are found in portable communications tools
and advanced medical devices, including
pacemakers. Zarlink’s collaboration with
Israel’s Given Imaging to help improve the
performance of a swallowable camera for
wireless endoscopy, has attracted world-
wide attention to the company. Zarlink’s
customers include Cisco, Samsung, Nokia,
Fujitsu, Siemens, Alcatel, NEC, Panasonic
and Cochlear. “Thanks to the engineering
schools in the province we’ve been able
to build a highly skilled, world-class R&D
organization that has made Zarlink a world
leader in a number of very innovative tech-
nologies,” says Zarlink CEO Kirk Mandy.

F A S T F A C T : The National Microelectronics and Photonics Testing

Collaboratory, the first comprehensive test “collaboratory”
of its kind anywhere in the world, provides Canadian researchers
with access to specialized test facilities, enabling increased sci-
entific collaboration and knowledge sharing.

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 ATI Technologies Inc..“The design and development of innovation-leading graphics technologies that
enable the world to be educated, enlightened and entertained is what our business is all about. To realize that
objective, we have to be able to operate in an environment that affords us easy access to our customers around
the world, provides us with exposure to the best and brightest young engineering minds; and, offers us a competi-
tive cost infrastructure. Ontario provides all of these attributes and more, including the best quality of life in the
world for our employees and the best investment climate for ATI.”
K.Y. Ho, Chairman and CEO

Electronics
Ontario microelectronics Our microelectronics industry has:
companies have a well-deserved • a sophisticated research infrastruc-
• hundreds of world-class companies
reputation for elegant, ture with facilities that include:
– semiconductor manufacturers
ingenious solutions that help – Canadian Microelectronics
like Nortel Networks, Zarlink
get better products to market Corporation (CMC), which helps
Semiconductor, Optotek Ltd. and
faster. industry access and apply micro-
Gennum Corporation
– components suppliers, design- electronics technology
ers and developers like Tundra – Centre for Microelectronics
Semiconductor, DALSA and Mosaid Assembly and Packaging (CMAP),
Technologies which advances international
– electronic manufacturing ser- microelectronics assembly and
vices (EMS) firms like Celestica, packaging at our universities in
BreconRidge, Sanmina-SCI, partnership with industry
Solectron and Flextronics – Micronet, which mobilizes our
research talent in the academic,
private and public sectors and
applies it to strengthen the
competitive ability of our micro-
electronics and information
technology industries
– Photonics Research Ontario (PRO),
which co-develops products and
processes and identifies and cap-
tures emerging technologies and
new opportunities
– System-on-Chip (SoC) Research
Laboratory, which researches
development and applications of
system-on-chip including ASIC
circuits and systems, computer
aided design of integrated circuits
and hardware/software co-design.

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We can HELP
Looking for a place to locate Let us help you with:
or expand your business?
• overview information on Ontario’s • coordination of site selection and
economy and business climate community visits throughout the
province
• province-wide site searching of avail-
able industrial land and buildings • contacts with federal, provincial
and municipal officials, as well as
• comprehensive profiles of Ontario
utilities, transportation firms and
municipalities
business facilitators.

2 4 PR0GRAMMED FOR SUCCESS

For more information about
investment opportunities in
Ontario, please call us at:

1-800-819-8701 (North America)

00-800-46-68-27 (U.K. and Europe)

E-mail: [email protected]
Website: www.2ontario.com

Ontario Investment Service

BCE Place, TD Canada Trust Tower
Suite 4040, 161 Bay Street
Toronto, Ontario, CANADA
M5J 2S1

Phone: (416) 360-4647

Fax: (416) 360-1817

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