Jeremy DepowVP, Policy & Research

THE INFORMATION AND COMMUNICATIONS TECHNOLOGY COUNCIL

Digitally Driven Change Bombardment and Canada’s Innovation Environment

Sea to Sky 2017| Prince Edward Island | August 9th 2017

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1. About Us

2. Canada’s digital economy at a glance

3. Change Bombardment1. Disruption in Context – no “jobapocalypse” 2. Disruption Drivers

4. Canada’s Innovation Climate

5. Q&A

OUTLINE

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• Not-for-profit national centre of expertise for the digital economy.

• Through trusted research, innovative talent solutions, and practical policy advice,

ICTC fosters innovative and globally competitive Canadian industries empowered

by a talented and diverse digital workforce.

ABOUT ICTC

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Canada’s digital economy at a glance• Inrecentyears,theCanadiandigitaleconomyhas

experiencedsignificantemploymentgrowth

• 2.38%labourgrowthintheCanadiantechnologysectorfrom2011-2016,afigure1.21%higherthantherestoftheeconomy

• TechsectoremploymentgrowthintheUSAgrewatanaverageannualrateof3.3%from2010-2016,andbynearly3%in2016alone totalingnearly7millionworkersacrossthecountry

• IntheEU,employmentinhigh-techknowledgeintensiveservicesaccountedfor3.5%oftotalEU28employmentin2015,thoughhadshownslowgrowthfrom2008-2015,totalinganannualaveragegrowthrateof1.3%.

0%

1%

2%

3%

2011-2016

LABOURGROWTH INCANADA

TechnologysectorRestoftheCanadianeconomy

EmploymentintheUS

Techworkers

Allotherworkers

6%ofallworkers

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Canada’s digital economy at a glance

• By2016,ICTemploymentinCanadatotaled 487,000 workersinthetechsector,withanadditional733,000 ICTprofessionalsworkingonothersectorsoftheeconomy.Thistotalsmorethan1.2milliontechworkersacrosstheentireeconomy

• In2016,theimpactofthetechsectoraloneonCanadianGDPgrewto$72.4B,representingapproximately3.5%oftotalCanadianGDPin2016($2.068trillion)

• Therewere1.5milliontechworkersintheUKby2016,withthetechsectorrepresentingroughly10% ofUKGDP

• Therewere7milliontechworkersintheUSby2016,withthetechsectoraccountingfor8%- roughly$1.3trillion– oftheUSeconomy

• Therewere8milliontechworkersinEUby2015,withtheUK,Germany,ItalyandPolandaccountingformorethanhalfoftechcompaniesinthe28states

487,000

733,000

ICTworkersinCanada

Intechsector

Inothersectorsoftheeconomy

1,200,000

7,000,000

8,000,000

Techworkersglobally

Canada

USA

EU

The Global Race is On

July 2017 – Maltese Presidency of the Council of the European Union:

“We will roll out 5G across Europe by 2025 and be the BlockchainContinent”

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Global Talent Race

• By2021,216,000 criticaldigitaltalentpositionswillneedtobefilledacrossallsectorsoftheeconomy

• IntheUSA,theBureauOfLabour Statisticspredictsthatdespitehighgrowth,by2020,theUSwillseeademandfor1millionadditionaltechjobstobefilledacrossallsectorsoftheeconomy

• TheEUissettofaceaneedfor800,000additionaltechworkersby2020

• Globally,workerswillincreasinglyneedtopossessdigitalskillstosucceedinthedigitaleconomyofthefuture

1337914421

20503

56334

22163

30291

ICTJobDemandbyIndustryinCanadaPublicAdministration

Finance&Insurance

WholesaleTrade

Professional,Scientific&TechnicalServicesInformation&CulturalIndustriesManufacturing

216,000

1,000,000

800,000

ICTemploymentdemand(numberofworkers)

Canada

USA

EU

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Change Bombardment: Emerging technologies in the digital economy

• In the next several years thefollowing 5 technologies will have an increasingly high impact on Canadian technological innovation:

• Virtual & Augmented Reality• Fifth Generation (5G) Mobile

Technology• 3D Printing • Blockchain• Artificial Intelligence (AI)

TransformationalTechnologiesinCanada

Augmented&VirtualReality

5GMobile

3DPrinting

Blockchain

AI

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The Five Technologies

• All sectors of the economy are integrating these technologies (VR & AR; 3D Printing, 5G mobile, Blockchain and AI) into their operations in an effort to increase productivity, reduce costs, generate revenue and advance innovation and growth.

• Many occupations will become most in demand as a result of these emerging technologies

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Virtual & Augmented Reality

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Virtual & Augmented Reality

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For more information, visit:

www.ictc-ctic.ca

Q & A

@ICTC_CTIC

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Appendix

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SMEs in the Canadian Digital Economy

• The Canadian digital economy is largely dominated by small businesses, many employing fewer than 100 people

• 99.1% are small companies, employing 1-99 people

• 0.8% are medium companies, employing 100-499

• 0.1% are large companies, employing more than 500

• Canadian companies represent 52 of the world’s 2,000 largest companies

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Automation in Canada & its consequences for SMEs

• Automation is changing the landscape of the Canadian economy. Automation is expected to grow in Canada at a compound annual rate of nearly 7% by 2018

• The main outputs of automation are: increased productivity, increased quality, increased business opportunities, increased workplace safety and increased ability to compete in the global marketplace

• ICTC estimates that a 1% increased in labourproductivity resultant of digital technology would yield an additional $2.5B to the Canadian economy

• Canadian SMEs are slow to adopt digital technology to the degree necessary to reach full economic potential

• Key initiatives to help SMEs adopt digital technology: • Education about the benefits of digital adoption• Investment in resources to train workers• Capital investment to purchase equipment

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The digitization of Canadian SMEs

• Increasingly, employers will need their employees to possess a range of digital skills to help improve efficiency, output and continue to generate revenue and growth

• The main digital skills that companies will increasingly require from employees are:

• Foundational skills (basic literacy, writing, document use, numeracy) – basic skills needed for all occupations

• Digital technical skills (general computer software usage) – general digital skills needed for most occupations

• Digital information processing skills (information processing, data synthesizing, cybersecurity)- job-specific digital skills for ICT workers

• Canadian SMEs need help to understand the value of digitizing their workforce, including the assurance that doing so will yield a the return on investments (ROI) in both short and long-term

• Time and financial constraints often act as impediments for small businesses to invest heavily in training

• External grants and policy initiatives, helping SMEs digitize are increasingly crucial

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ICTC’s talent initiatives for SME digitization in Canada

• Small Business Digitization Initiative (SBDI): A training program connecting youth and small businesses together to solve real employer digital adoption problems

• Career Connect: A program assisting SMEs hire unemployed or underemployed post-secondary students. CareerConnect subsidizes half the salary of an eligible participant

• CyberTitan: An online program, where students across Canada compete for “cyber titan” status, displaying skills and understanding in cybersecurity

• Focus on Youth Careers: In partnership with Willis College in Ottawa, this is a pilot program offering 45 post-secondary students in the region job preparation training, technical training and a work placement

• Focus on Information Technology: A national program for grade 11 and 12 students, providing a foundation of technical, business and interpersonal skills. Participants who complete the program receive national and industry certifications

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ICTC’s talent initiatives for SME digitization in Canada

• Women in Tech (WIT): A national and provincial program for the advancement of women’s recruitment, retention and career advancement in current and emerging technology sectors

• Go Talent: A program that connects employers with Internationally Educated Professionals (IEPs) en route to Canada

• Unlocking Global Talent Initiative: A partnership between ICTC and Talent Beyond Boundaries to fill in-demand roles in Canada with refugees that possess those skills. i.e. programmers, interactive media developers, web developers, etc.

• Integrated Work Experience Strategy (IWES): A bridging program that trains Internationally Educated Professionals (IEPs) looking to find work in the Canadian ICT sector. Targeting unemployed or underemployed IEPs, the program is 3 weeks long of in-class study, followed by 3 months of coaching relationships from leaders in the ICT sector

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Other Considerations

• SME/Startup Culture• Paying it forward • Accelerators, Incubators & Tech

Hubs• Risk & reward

• Training, Education and Technological Disruption• Increased automation• Emerging technologies & innovation• Graduation rates • Curriculum changes: K-12 coding,

practical education, post-secondary

• Other SME scale up opportunities & challenges • Funding• Immigration• Corporate taxes• Wages • Cost of Living

• International trade agreements • NAFTA• CETA• Canada-China Trade Agreement• Canada-India Trade Agreement

• Global relations & global considerations • Climate change• International conflict