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How Well Does Canada’s Digital Infrastructure Compare with the US?

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When writing blogs about digitalisation, it’s very easy to use the term ‘the digital world’. For instance:

‘In the digital world of 2024…’

‘Developments in the digital world…’

‘The changing landscape of the digital world…’

These are all perfectly acceptable phrases to use in passing, but while it’s easy to refer to the digital landscape as a single global entity, it is generalising the conversation to the point of misdirection. Because the ‘digital world’ is not one entity, it’s a series of interconnected corridors that varies depending on the region.

Each ecosystem has their part to play in global digital development and infrastructure, but there are some regions that are more of a digital focal point than others. Canada, for instance, is an up-and-coming digital powerhouse that’s worth mentioning in the wider conversation.

Canada as a Digital Hub

After the number of small businesses grew by 18.6% in 2017, Canada has steadily become a certified digital hub, with 63% of those small businesses now exporting abroad.

This, in many ways, can be put down to the radical speed in which Canadian carriers implemented 5G. According to recent data, 5G and related technologies will deliver around 16% of Canada’s GDP growth in the next twelve years – and around $150 billion in value between now and 2040.

This has been a game changer for many inherently valuable digitally-oriented businesses, not least the iGaming market, which is now growing at a CAGR of 6.84% – and sitting at $4.2 billion in 2024. Indeed, like hitting a value of 21 in the game of blackjack, it has tripled Canada’s bet to become a streamlined digital powerhouse that can nurture purely digital innovators.

Now over 50% of existing Canadian businesses are ranking application modernization as a top priority, while the entire business eco-system amassed nearly $52 billion in digital sales during 2023. According to USNews, Canada has the ninth most well-developed digital infrastructure in the world, which is only six places behind the US.

How Does Canada Compare to the US?

With Canada also boosting its digital identity through tech competitions, grants, and subsequently, new and successful startups, in recent years, there has been conversation surrounding its infrastructure and whether it is becoming more of a hub than the US. At this point in time, this cannot be said to be true, although things are looking positive.

According to recent statistics, the USA is still one of the top regions for tech talent, with technological markets that far outweigh those existing in Canada. For instance, San Francisco Bay Area – which has the country’s biggest tech scene – has nearly 400,000 in tech talent, and a 13% talent growth rate from 2015 onwards. Canada’s burgeoning technological hub, Toronto, has only 289,000 in tech talent. But it has an estimated 44% in talent growth from 2015 onwards.

As well as this, it should be noted how tech juggernauts like Amazon, Google, and Meta are growing their presence in Canada. Considering how places like San Francisco, New York, and Washington have been absorbing big tech companies over the last few decades, this is a big shakeup that signifies Canada’s aggressive digital growth. So long as there is a balance with local businesses – without potential startup workers moving to the tech giants – then there’s every chance Canada can catch up with its American neighbours.

The next few years, in particular, should be very telling when it comes to Canada’s future as a digital giant itself. At this point, it’s clear that the best and brightest in the digital-verse are choosing Canada to build a blossoming business, and so long as that continues to happen, Canada could very well become the next Silicon Valley.

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