Item - 2014.ED30.5

The Economic Development Committee:

1.         Directed the General Manager, Economic Development and Culture to continue efforts to strengthen the Tech sector ecosystem.

Collaborating for Competitiveness, the City’s economic growth and job creation strategy, includes Recommendation B.1 to ensure sufficient land is available to accommodate commercial and industrial employment growth; and Recommendation C.1 to help small and medium size enterprises form and prosper.  This report addresses these recommendations in relation to the need for affordable space to support the growth of Toronto’s Tech sector.

Toronto's Technology (Tech) Sector is a key strategic sector that is both a major employer in its own right and an essential enabler and economic driver of virtually all other sectors of Toronto's economy, including financial services, life science, renewable energy, film & television, digital media and advanced manufacturing. 

The Tech sector includes hardware (e.g. manufacturing of computers, peripherals, devices, etc.), software (developing programs, applications, games, etc.) and service industries (maintenance, capture, storage, transmission, and display of electronic data and information). 

There is a high and rapidly growing global demand for technology which is fueling new firm formation and job creation and is a driving force behind Toronto's vibrant and burgeoning Tech sector.  This demand shows no signs of diminishing and Toronto based start-ups and emerging firms are poised for growth. 

A key factor in the success of the Toronto region as a centre of excellence for technology is the complete Tech sector ecosystem that exists within the city that attracts large global companies and supports start-ups and emerging firms.  Expanding the Tech sector ecosystem within Toronto to facilitate and accommodate the rapid growth is also critical to strengthening and growing other key economic sectors within the city.  If the city and region, which have created the environment and invested in the resources that helped catalyze the initial ideas and business opportunities in the Tech sector are not able to provide affordable space for next stage growth, many of these firms will grow elsewhere.

City staff efforts to strengthen the tech sector are focussed on developing partnerships to

retain, develop and attract an adequate supply of talent and ensure sufficient available space for entrepreneurs, start-ups and early stage firms.   This report outlines the current and emerging space options available to tech start-ups.