2008 Annual Toronto Region Innovation Gauge

2008
Annual Toronto Region
Innovation Gauge

2 Executive Summary
4 Introduction
6 At A Glance
8 Who We Are
18 What We Offer
27 How We Are Performing
32 Conclusion
34 ATRIG Advisory Council
36 Appendix 1 – Selection of Comparator Regions
43 Appendix 2 – Methodology/Data Sources
53 Appendix 3 – Selected Sector Profiles
58 Appendix 4 – List of Acronyms
59 Endnotes
TABLE OF CONTENTS

EXECUTIVE
SUMMARY

1
2008 Annual Toronto Region Innovation Gauge

WHAT WE OFFER
The Toronto Region is particularly strong in a critically
important area that facilitates innovation – education in
the 25-34 age range. Its high and growing overall levels
of post-secondary and post-graduate residents include
Business, Science and Technology master’s and doctoral
graduates ready to become the next generation of
managers and entrepreneurs. The region would benefit
The Toronto Region has an innovative research base with
from even more post-secondary graduates and post-
a highly-educated and growing population that benefits
graduate degree holders (master's and doctorates) as
- Albert Szent-Gyorgyi,

from a diversified manufacturing base and other major
well as initiatives to encourage entry to these programs
Hungarian Biochemist, 1937 Nobel Prize for Medicine

advantages compared to its competition – that’s the
for even larger numbers of students.
good news.
The scale of R&D funding from private sources in the
However, the Toronto Region faces some significant
United States is much higher than in Canada, although
challenges to meeting its full potential to become one
collaborative private/public sector funding for R&D
of the top research capitals in the world. The obstacles
in the Toronto Region universities is increasing.
to be overcome include the need for even more post-
Unfortunately, the region performs relatively poorly
graduate students, stronger governmental support for
compared to other regions in government funding for
research and development, more private sector R&D,
R&D in the sciences, engineering and health related
and greater focus on knowledge and technology transfer.
areas, and in private sector R&D. It would benefit from
That’s the conclusion reached from a review of the Toronto more R&D investment from governments which would

HOW WE ARE PERFORMING
Region’s research and innovation system conducted by the lead to its R&D facilities and human resources becoming
EXECUTIVE SUMMARY

Toronto Region Research Alliance (TRRA). stronger, and its universities building a base upon which
The second edition of the Toronto Region Research their capacity to train graduate students and attract
Alliance’s Annual Toronto Region Innovation Gauge R&D-intense industries as partners.
“Research is to see what everybody else

(ATRIG) analyzes the current strengths and weaknesses
has seen, and to think what nobody

of the region relative to other regions with strong
else has thought.”

research bases, like Silicon Valley in California and The Toronto Region is publishing more and increasing
Massachusetts, and to more comparable research its numbers of licenses, inventions and patents. These
centres, like the Research Triangle in North Carolina, commercialization and knowledge transfer mechanisms
Montreal, Illinois and Michigan. are tangible proof that the region’s universities are
These findings will help key decision makers in transferring their R&D to the marketplace. But the region

WHO WE ARE IN SUMMARY
government, industry and post-secondary education is not matching the competition. It is not performing
better understand how the Toronto Region can grow and as well as many of its comparator regions in terms of
prosper by focusing attention on building a stronger relative impact – where it publishes and how much
research base that will benefit us all. it commercializes.

The population of the Toronto Region is growing rapidly, The Toronto Region has a strong foundation – a large and
fueled by an influx of skilled, educated immigrants from highly-educated population, diverse industries and high
around the world. The region’s economy benefits from employment rates, for instance – upon which it can build
diverse industrial sectors outside its traditional to improve its performance. But to compete successfully
manufacturing base (including “fast” companies with to become a truly innovative research base will require
strong potential for growth), solid employment levels, significantly more sustained efforts – and a collaborative
superior wages and healthy household income. Its approach between government, industry and the post-
high use of wireless communication is a sign of a secondary education sector.
technologically-connected and progressive society.

2

INTRODUCTION

3

The Toronto Region Research Alliance (TRRA) launched
the Annual Toronto Region Innovation Gauge (ATRIG) last TORONTO REGION PROFILE
year provide an accurate diagnosis
of the current strengths and weaknesses of the The Toronto Region, at the western end of Lake
region’s innovation system relative to key international Ontario, consists of Durham, Halton, Hamilton,
competitor regions. Guelph, Peel, Toronto, Waterloo, Wellington
and York. Over seven million people live in the
We believe that an annual analysis of the region’s Toronto Region, making it the fourth largest
innovation performance, based on a range of urban area in North America after New York,
internationally-accepted performance indicators, Los Angeles and Chicago.
is helpful to sustain and enhance the Toronto Region’s
innovation performance. For the purpose of this report The Toronto Region GDP is $328 billion,
we have used the same definition of innovation adopted accounting for 22% of Canada’s GDP. The region
by The Conference Board of Canada, “the ability to turn has a wide range of industrial sectors with
knowledge into new and improved goods and services.”1 strong employment, including Manufacturing
(529,000), Professional and Scientific services
We hope that the Innovation Gauge will become an (326,000), and Finance, Insurance and Real
increasingly comprehensive measure of the region’s Estate services (317,000).
comparative innovation performance, and will help
decision-makers undertake the changes needed to move The Toronto Region workforce is well-educated,
the Toronto Region into the top R&D and innovation- highly-skilled and growing: every year, 75,000
based economies in the world. university and college graduates and 47,000
immigrants enter a very skilled workforce of
The format of ATRIG 2007 was an important first step. more than 1.8 million.
In consultation with the ATRIG Advisory Council, we
INTRODUCTION

modeled its approach on the Index of the Massachusetts The region is attractive to immigrants. Forty-five
Innovation Economy (MA Index) developed by the percent of recent immigrants to Canada choose
Massachusetts Technology Collaborative (MTC). to live in the Toronto Region. In addition, 60%
of these newcomers have at least one university
While the MA Index offered a rigorous and comprehensive degree, which contributes to the region’s highly-
framework for measuring innovation performance, we educated workforce.
found that the Toronto Region lacked data routinely
captured and available in the United States on numerous The Toronto Region is Canada’s largest centre
innovation indicators – for the country as a whole and for for research and education, and is home to 9
the comparative regions in particular. With input from the universities, 8 colleges, and 12 research hospitals.
ATRIG Advisory Council, we addressed these challenges
in the 2008 report by selecting comparator regions and
indicators more relevant to the Toronto Region. An
understanding of the drivers of the economies of these We will continue to adapt the indicators we use for future
regions and what makes them strong will yield important Innovation Gauge releases as the region continues to
information and useful models for the Toronto Region. build on its capacity to monitor and assess the key
elements of the innovation system.

4

ATRIG brings a Toronto Region voice to the growing
chorus of organizations actively working to focus public HOW ATRIG SELECTED THIS YEAR’S
attention on critical innovation issues and their COMPARATOR REGIONS
relationship to our future competitiveness and prosperity.
This report compares the Toronto Region to
Reports alone, however, will not produce the changes Illinois, Massachusetts, Michigan, Montreal,
needed to strengthen the region’s innovation performance. North Carolina’s Research Triangle and
ATRIG is the first step in a broader process of informing, California’s Silicon Valley.
engaging and building consensus among the Toronto
Region innovation system stakeholders. Together, this We selected these comparator regions or states
impressive group of innovation stakeholders can help because they are similar in character, size,
shape the development of effective strategies, policies economic base or other attributes to the Toronto
and programs to address the region’s weaknesses and Region, or because they have economies – or

SPECIAL THANKS
capitalize on its strengths. attributes which make them strong research-
driven economies – to which we aspire. All
TRRA invites readers to participate in this process and we have significant R&D and strong innovation
welcome feedback. Please email us at info@trra.ca indicators, including many that show positive
trends over time.
In most cases ATRIG indicators are presented
TRRA is grateful for the assistance and guidance per 100,000 population in order to provide an
provided by the members of our ATRIG Advisory Council accurate picture of the scale of the various
(please see our acknowledgements, on page 34, for indicators in the Toronto Region relative to
a list of members). We look forward to their continued these comparator regions. For more information
participation and advice as we adapt and enhance ATRIG about the comparator regions, please refer to
in future years. Appendix 1.


5

COMPARATOR REGIONS
The Innovation Gauge compares the Toronto Region’s performance to
six regions that are – or have been – successful in innovation: Illinois,
Massachusetts, Michigan, Montreal, Research Triangle and Silicon
Valley. The comparators were selected based on: population,
proximity, industrial make-up, strong manufacturing base,
research intensity, and innovation performance.

INDICATORS
ATRIG indicators fall into three broad categories which paint a
picture of the Toronto Region’s innovation performance: who
we are – a description of the region’s population and economy;
The Annual Toronto Region
what we offer – factors that facilitate innovation; and how we
Innovation Gauge analyzes
perform – measures of innovative outputs.

IN SUMMARY
the region’s innovation performance,
based on a range of innovation
indicators. It highlights the current
strengths and weaknesses of the The Toronto Region has a strong foundation – a large and
region’s innovation system relative highly-educated population, diverse industries and high
to selected comparator regions. employment rates, for instance – upon which it can build
to improve its performance. But to compete successfully
to become a truly innovative research base will require
significantly more sustained efforts – and a collaborative
approach between government, industry and the post-
secondary education sector.

© 2008 Toronto Region Research Alliance TORONTO REGION
AT A GLANCE

York
Durham
Peel
Toronto
Guelph

Wellington

Waterloo

Halton

Hamilton-
Wentworth

6

The population of the Toronto Region The Toronto Region has high levels
is growing rapidly, fueled by an influx of post-secondary and post-graduate
of skilled, educated immigrants from education in the 25-34 age range, Like the comparators, the Toronto
around the world. The region’s with recent Business, Science and Region is publishing more and
economy benefits from diverse Technology graduates poised to increasing its numbers of licenses,
industrial sectors outside its become the next generation of inventions and patents. These
traditional manufacturing base managers and entrepreneurs. This commercialization and knowledge
(including “fast” companies with needs to be sustained. The scale of transfer mechanisms are tangible
strong potential for growth), solid private and public R&D funding in the proof that R&D is being transferred
employment levels, superior wages U.S. far outstrips Canada, although to the marketplace. The region is not
and healthy household income. collaborative private/public sector performing as well as many of its
funding for R&D in the Toronto comparators in terms of absolute
Region universities is increasing. numbers of technology transfers or
More government R&D investment relative impact – where it publishes
would strengthen the universities’ and how much it commercializes.
R&D facilities and human resources,
improve graduate training, making
the region more attractive to R&D-
intense industries as partners.
WHO WE ARE WHAT WE OFFER HOW WE ARE
PERFORMING

Average Relative Citations,
2000-2006
Silicon Valley 1.846
Massachusetts 1.841
Research Triangle 1.603
Illinois 1.511
Toronto
Region 45% Rest of

Michigan 1.511
55%
Canada

Toronto Region 1.409
Montreal 1.296
80,000 +
average population
increase in the
region each year 29% in publications,
a trend that matches all
45% of new comparator regions
immigrants to Canada 65% of workforce
settle in the Toronto 25-34 years of age Ahead of just one
Region has a post-secondary comparator in average
degree or diploma relative impact factors
Ahead of only one
comparator in the
number of engineers
graduating with a
Average 14 “fast bachelor’s degree
companies” per year
over the last 6 years 2x increase in NSERC
Collaborative Research
11 industrial sectors & Development project
above the average funding (’98-’08), from Improving on total
North American $5.1 to $10.2 million licenses, patents and
concentration, more invention disclosures
than comparator Lowest of all regions (’01-’06); however, the

regions in government R&D
highest performing
funding per capita
regions produce
4x more than the
Toronto Region

7

8

WHO WE ARE

With a population of more than seven million people population, however, is a quarter the size of the Toronto
(Fig. 1), the Toronto Region is the third largest of the Region. In absolute numbers, the Toronto Region grew
comparator regions. It has fewer people than Illinois three times more – by approximately 140,000 people –
and Michigan, but a larger population than the other than the Research Triangle, which grew by
comparator regions. The region’s population growth rate, approximately 45,000 people.
at almost 2% over the last 10 years (Fig. 2), is healthy,
The Toronto Region’s net natural increase in population
fueled by growing numbers of educated immigrants.
(i.e. births in the region) has remained steady at

THE TORONTO REGION HAS RELATIVELY
Household income is relatively high, and many people
approximately 40,000 persons per year. As Fig. 4 shows,

STRONG POPULATION GROWTH
subscribe to wireless services. Its industrial sectors
on balance, the population of the region increases by
are diverse, and the region fares well in the high
more than 80,000 persons annually – largely fueled by
technology-related fields.
immigration, (i.e. adding births to immigrant numbers
and subtracting migration from out of the region).
Indeed, the number of immigrants to the Toronto Region
has been more than double that of the Toronto Region’s
As Fig. 3 indicates, the Toronto Region’s closest closest comparator, the Research Triangle, in each year
comparator, the Research Triangle, has a greater between 2000 and 2006.
annual net migration. The Research Triangle’s

Population, 2007

Illinois 12.9
Michigan 10.1
Toronto Region 7.0

Massachusetts 6.4
Montreal 3.7
Silicon Valley 2.6

Research Triangle 1.6

Population, Compound Average Annual Growth, 1996-2007
0 2 4 6 8 10 12 14
Persons (millions)

Research Triangle 3.39%
Sources: Statistics Canada, Conference Board of Canada, U.S. Census Bureau, California Department of Finance
Fig. 1

Toronto Region 1.92%
Silicon Valley 1.04%
Montreal 0.82%
Illinois 0.55%
Massachusetts 0.39%
Michigan 0.31%

0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Compound Average Annual Growth Rate
Fig. 2

Sources: Statistics Canada, Conference Board of Canada, U.S. Census Bureau, California Department of Finance

9

Annual Net Migration (International and Domestic), 2000-2006

140

120

100

80

60

40

20

0
Toronto Region
Fig. 3

-20

2000 2001 2002 2003 2004 2005 2006
Montreal
Massachusetts

-40
Silicon Valley
Research Triangle

Annual Components of Population Change, Toronto Region, 2000-2006
Michigan
Illinois
Number of Migrants (thousands)

Sources: Conference Board of Canada, U.S. Census Bureau, California Department of Finance

131 128

100 100 100
93
140

92
120

100

80

60

40

-2 0
20

-14 -17 -17
-20
-26
0

2000 2001 2002 2003 2004 2005 2006
-20
Net International
Migration

-40
Net Domestic
Migration
Fig. 4

Net Natural
Increase

Source: Conference Board of Canada
Persons (Thousands)

10

MOST IMMIGRANTS ENTER THE REGION AS
HIGHLY-EDUCATED WORKERS
Canada, welcoming approximately 400,000 people. This
represents approximately. 60,000 more immigrants than
the region’s closest comparator, Silicon Valley, and three
The Toronto Region has been, and continues to be, a times more than its Canadian comparator, Montreal.
magnet for educated and experienced immigrants. Since
1961, more than a quarter of Ontario’s population (26.8%) This influx of immigrants is particularly good news for the
has been born outside Canada. This proportion is 33.0% Toronto Region. In the years between 2000 and 2006, the
in all city regions, but 43.4% in Toronto.2 Toronto Region welcomed increasing numbers of highly-
educated and skilled immigrants as Fig. 6 shows. Of these
Large numbers of educated immigrants are symptomatic immigrants, 73% are in the labour force (Fig. 6a) and, of
of a national trend. In 1995, 21% of immigrants to Canada this, 88% or approximately 196,000, are employed.
had a university degree; in 2000 this percentage had risen
to 26%. The percentage of native-born Canadians with The positive contribution of educated immigrants to the
university degrees rose at a much slower rate, from Toronto Region is corroborated by national studies, which
16% to 18% over the same period.3 show that a higher percentage of immigrants with post-
secondary education are entering the workforce. According
Results from the 2001 census indicated that immigration to a recent StatsCan study on immigrants to Canada, “in
has continued to be of growing importance to the region’s 2007, the largest gains in immigrant employment were
population.4 By 2006, of the 636,500 recent core working- among university-educated immigrants of core working
age immigrants who arrived in Canada, the lion’s share age. While employment for immigrants with other levels
went to Ontario’s labour market (51.1%), followed by of education was mostly unchanged, those with university
Quebec (19.2%) and British Columbia (15.9%).5 As Fig. 5 degrees had an estimated gain of 62,000 (+7.0%), all in
shows, between 2001 and 2006, the Toronto Region full time.”6
benefited from almost 45% of the new immigrants to

Number of Immigrants as a Percentage of the National Number, 2001-2006

45%
50

40

15%
30

6% 5%
3%
20

2% 0%
Toronto Region: 398,980
Montreal: 133,650

10
Silicon Valley: 341,207
Illinois: 279,358
Massachusetts: 178,329

0
Michigan: 119,974
Research Triangle: 17,593
Fig. 5
Percentage of National Immigration

Sources: Statistics Canada, U.S. Census Bureau
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11

Immigrants to the Toronto Region, Highest Level of Education,
Period of Immigration, 1991-2006

180

160

140

120

100

80

60

40

1991-1995 1996-2000 2001-2006
20

0
High School
Apprenticeship
College
Fig. 6

University

2006 Labour Force Status of Immigrants 2
Arriving Between 2001-2006
Years

Not in 27%

170

WHY ARE POPULATION GROWTH
Number of Immigrants (Thousands)

73% In
Labour Force

AND IMMIGRATION IMPORTANT?
12
109

86

85

81

Labour Force

THE TORONTO REGION IMMIGRANT
59

EMPLOYMENT COUNCIL (TRIEC)
14

36

The high rate of population growth in the Toronto Region
Established in September 2003, TRIEC is
26

is widely considered to be a requirement for economic
17

comprised of employers, labour, occupational
15

growth, providing human capital and a constant influx of
regulatory bodies, post-secondary institutions,
talent. As Dr. Larry Swanson, associate director of the
assessment service providers, community
Source: Statistics Canada

University of Montana’s O’Connor Center for the Rocky
organizations, and all three levels of government.
Mountain West pointed out, “economic strength follows
Its primary goal is to find and implement local
population strength: population growth means economic
solutions that help break down the barriers
growth and diversification; population loss means
immigrants face when looking for work in the
Fig. 6a

economic loss or stagnation.”7
Toronto Region.
73% of immigrants

Immigrants – particularly the well-educated
“The Toronto Region continues to attract large
(221,000) arriving between

immigrants who are coming to the Toronto Region –
numbers of skilled immigrants who comprise
are of particular importance in bolstering labour force
2001-2006 are in the labour

virtually all net labour force growth in the region,”
growth. Immigrants enrich the Toronto Region with their
says TRIEC director Elizabeth McIsaac. “This
force. Of this number:

skills, training and life experiences, augmenting the
offers the local economy a competitive advantage
region’s foundation for innovation. In fact, the Caledon
if the skills and knowledge of these workers can
– 196,000 were employed (88%)

Institute of Social Policy points to immigrants as a
be effectively leveraged and integrated.”
counterpoint to the much-debated “brain drain.”8
– 25,000 were unemployed (12%)

12

Immigrants also add what one researcher calls “knowledge
spillover,” the learning and transfer of knowledge between ENCOURAGING IMMIGRATION OF SKILLED AND
individuals and firms that precedes innovation. EDUCATED WORKERS
“Innovations occur when individuals with high degrees • Ontario now has an uncapped number of work
of existing creativity or knowledge make new and novel permits available to foreign workers. For intra-
combinations of this knowledge with new insights observed company transfers, the process is fast and
or learned through spillovers,” say Brian Knudsen, Richard straightforward: transferees can quickly obtain
Florida, Gary Gates, and Kevin Stolarick in Urban Density, a work permit for up to seven years.
Creativity, and Innovation. They go on to point out that such (www.cic.investinontario.com/bi)
spillovers occur “when one individual’s creativity is
transferred to another individual or firm. These creative • Ontario’s Provincial Nominee Program, an
spillovers are in part believed to arise due to frequent expedited permanent resident visa program,
face-to-face interactions and communication allows employers to permanently recruit high-
between individuals.”9 end research staff and other workers within
defined occupations.
Is the Toronto Region taking full advantage of this (www.ontarioimmigration.ca/english/pnp.asp)
latent potential?
• The 2007 federal budget created a Foreign
Recognition of immigrants’ credentials has been a Credential Recognition office (which has,
stumbling block in the past. According to data from however, so far limited itself to giving referrals
Status of Women Canada, just over half of foreign-trained to appropriate provincial offices).*
professionals are working in professions or trades three
years after immigrating.10 In addition, the human capital • In November 2007, Ottawa announced
of increasing number of immigrants from eastern expanded foreign credential referral services
Europe, south, east and west Asia and Africa who are in India and China that offer orientation

EMPLOYMENT IN KEY INDUSTRIAL
now arriving (rising from 35% in 1981 to 72% in 2001) sessions for potential immigrants.*

SECTORS IS STRONG
“may initially be less transferable due to potential issues
regarding language, cultural differences, education
quality, and possibly discrimination.”11

strong regional focus and expertise in many sectors
outside its traditional manufacturing base. Fig. 7 shows
The Toronto Region has high levels of employment in key that the Toronto Region has a wide range of industrial
non-manufacturing industrial sectors, largely due to its
* The Conference Board of Canada, The Canada Project Progress

sectors, and that the majority of industries in the Toronto
Report 2007: The Roads Not Travelled: Insights You Can Count On,
(Ottawa: The Conference Board, 2008)

Industry Sectors, by Size, Average Wage, and Relative North American
Concentration, Toronto Region, 2006

100,000
90,000
80,000
70,000
60,000
Finance & Insurance

50,000
Utilities

40,000
Health Care & Professional, Scientific
Social Assistance & Technical Services

30,000
Public Information &
Cultural Industries

0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50
Administration Educational Services

20,000
Retail Trade
Construction Wholesale Trade

10,000
Other Services

0
Manufacturing

Waste Management & Transportation and Warehousing

Location Quotient
Remediation Service Agriculture, Forestry, Real Estate &
Fishing & Hunting Rental Leasing
Arts, Entertainment
Fig. 7

Accommodation & Food Services & Recreation

($) Average Wage


13

Region are performing better than in the rest of Canada.
The X-axis of this graph shows its Location Quotient (LQ) –
the employment concentration of industry clusters in the
Toronto Region compared to the same industry clusters
across North America. Industries with a LQ of one are
performing at the average level. Those with a score higher The region has high levels of employment in the
than one have a higher competitive advantage. The Fig. 7 Manufacturing and Professional, Scientific and Technical
also shows that salaries are high in many of the region’s sectors as well as in Finance, Insurance and Real Estate
larger and stronger sectors. The relative size of the sector and compares favorably to Silicon Valley and
– Meric Gertler,

sphere shows the number of people employed in the Massachusetts, in each of these sectors (Fig. 8). This
Dean of Arts and Science, University of Toronto

sector, and many sectors in the region are quite large. is of particular importance as these regions are strong
performers in both R&D and innovation performance.

Industrial Employment, Percentage in Key Sectors, 2007

Professional, Scientific and Technical Services
4.6%
“…what you’re looking at here is really a

3.0%
2.9%
story of diversity versus one of specialization.”

4.3%
Toronto Region

5.1%
Michigan

8.2%
Illinois

4.1%
Montreal

Manufacturing
Research Triangle
Silicon Valley

7.6%
Massachusetts

6.1%
5.2%
7.1%
Toronto Region

3.5%
Michigan

6.2%
Illinois

4.3%
Montreal
Research Triangle

Finance, Insurance and Real Estate Services
Silicon Valley

4.4%
Fig. 8

Massachusetts

2.2%
3.4%
3.4%
Toronto Region

2.6%
Michigan

2.6%
Illinois

4.0%
Montreal

0 2 4 6 8
Research Triangle
Silicon Valley
Massachusetts

% of Total Employment in Area


14

EMPLOYMENT OPPORTUNITIES ARE DIVERSE MANY “FIRMS TO WATCH”
The Toronto Region has a wide range of specializations The Toronto Region has many successful high-tech
and many occupations within the working population “firms to watch.” As Fig. 10 shows, the region fares well
(Fig. 9). Approximately 75% of these occupations require among its comparators with fastest-growing technology
specialized training and education, indicating the region firms in North America between 2001 and 2007.
has a labour force which is “rich” in specialized skills
While the region pales in comparison to the numbers
and education.
in Silicon Valley and Massachusetts, it performs well
in comparison to other selected regions, consistently
out-performing Montreal, Research Triangle, Illinois
and Michigan.

Labour Force by Occupation, Toronto Region, 2006

and Utilities 7%
A. Management 11%
I. Primary Industry 1%
J. Processing, Manufacturing

and Related 13%
and Administrative 21%
H. Trades, Transport and

G. Sales and Service 22%
Equipment Operators
B. Business, Finance

Sciences and Related 8%

D. Health 5%
and Sport 4%
C. Natural and Applied

and Religion 8%
F. Art, Culture, Recreation

Technology “Fast 500 Companies” Annual Average Number, 2001-2007
E. Social Science, Education,
Government Service
Fig. 9

62
Source: Statistics Canada

70

60

35
50

40

14
8 8 7
30

2
20

10

0
Fig. 10

Source: Deloitte and Touche
Average Number of Companies

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15

Median Household Income, Constant 2006 USD, 2000 and 2006

80

60

40

20

WHY IS A DIVERSE ECONOMY IMPORTANT? WHY IS HOUSEHOLD INCOME IMPORTANT?
2000
2006
Fig. 11

Diversity in the Toronto Region industry and multiple Good household income is a sign of overall economic
78.8

employment sectors has contributed to stronger prosperity and can act as an indicator of innovation.

WIRELESS SUBSCRIBER RATE IS HIGH
73.3

population growth than in areas that are heavily reliant The Toronto Region ranks high in this category, likely

ACROSS THE REGION
on a manufacturing base. Furthermore, the region’s due to its diverse industrial sectors, relatively low
Sources: Statistics Canada, U.S. Census Bureau, U.S. Department of Labor-Bureau of Labor Statistics

diverse areas of specialization add economic stability. unemployment rate, and the consistent growth in
Because the Toronto Region is not dependent upon one its economy since the early 1990s.
56.2

54.4

53.6
53.4

sector, its economy may not be as vulnerable when one
50.5
($) Thousands

50.3
49.3

49.3
48.8

47.1
sector is suffering, because others are available to
support the economy.
38.9

HOUSEHOLD INCOME GROWTH IS HEALTHY
34.9

Many strong industrial sectors indicate that the Toronto The Toronto Region is keeping up with or is on par with
Region is doing an excellent job of maintaining and the comparator regions with respect to number of
growing non-manufacturing related industries and subscribers to wireless communications and services
supplying the human capital required for these jobs. (Fig. 12). Since 2001, however, the region has fallen
behind relative to its comparators. In 2001, the Toronto

WHY IS WIRELESS SUBSCRIPTION IMPORTANT?
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Region had the highest number of subscribers, with a
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10% advantage over its closest comparators, Silicon
on
Ill

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The Toronto Region’s average household income growth,
Tr
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Valley and the Research Triangle. By 2006, the region
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while lower than in Massachusetts and Silicon Valley, is
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had fallen to third in this indicator.
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healthy (see Fig. 11). The Toronto Region’s diverse
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industrial make-up will likely ensure that the region will
continue to fare better than the U.S. comparator regions
as the economic downturn in the United States begins to The Toronto Region’s high number of subscribers to
affect America’s overall income growth. wireless communications indicates a technologically-
Michigan and Illinois have already shown declines in connected and progressive society.
household income due to the decline of manufacturing in
these regions. A more diversified economy has prevented
this from happening in the Toronto Region.

16

Suscribers to Wireless Communications and Services,
Percentage of Population, 2001 and 2006

82 80 79
75 73
68
100

60 59
49 50 47
45 46
80

41
60

40

20

0
2001
2006
Fig. 12

THE BOTTOM LINE
• Toronto Region has a strong and growing population base
• Toronto Region attracts and retains skilled immigrants
• Toronto Region has a diverse economy, with strong industrial clusters in key areas
Sources: FCC, Statistics Canada
Percent of Population

• Toronto Region is tech savvy and inter-connected
• The Toronto Region has “fast companies” with highlighted potential for growth
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17

18

WHAT WE OFFER

Educated residents and funding for Research & While the region does not perform well in terms of
Development (R&D) are essential for innovation. overall numbers of citizens with post-graduate and
The Toronto Region has much to offer in these areas. professional degrees in the total workforce compared to
The region has high and growing overall numbers the selected comparators in the U.S., there has been a
of residents with post-secondary and post-graduate 2% overall increase in this measure (an increase of more
degrees. In addition, both government and private sector than 17,000 people) since 2001 (Fig. 14). Only Montreal
support for R&D in the region has increased, including has enjoyed comparable growth. Indeed, the dramatic
collaborative R&D delivered by universities and colleges. increase in post-graduate and professional degrees

HIGH AND GROWING LEVELS OF
between 2001 and 2006 shows a healthy positive trend

POST-SECONDARY EDUCATION
that many of the comparators have failed to replicate.
Some of the U.S. comparators experienced a decline
in this category, and many showed very small growth.
More Business, Science and Technology master’s and
doctorate graduates are ready to become the next
generation of managers and professionals.
The Toronto Region is doing well with respect to overall
level of education for the age range 25-34 years. These
recent college and university graduates represent the GOVERNMENT SUPPORT FOR
“new” workforce. POST-GRADUATE EDUCATION
As Fig. 13 illustrates, the Toronto Region comes first The Reaching Higher plan, unveiled in the
in college or university education in this age range and 2005 Ontario Budget, targeted 14,000 new
within the comparator selection. A larger percentage post-graduate spaces school by 2009/10.
of the Toronto Region’s population has a college or It also identified an additional 104 first-year
university education than any of the comparator regions undergraduate medical spaces by 2008/09.
in this age range, with more than 65% of the population This program was part of the Ontario
in 2006 holding at least a college diploma or associate’s government’s $6.2 billion investment
degree. This represents an increase from 56% in 2001. in post-secondary education.
(www.edu.gov.on.ca/eng/tcu/about/annualreport)

Percent of Population 25-34 years with a Post-Secondary Degree
or Diploma, 2001 and 2006
EDUCATION

70

60

50

40

30
2001
2006
Fig. 13
65.2

60.3

56.8
55.2
% of Population 25-34

56

53.8
53.3

51.9
53

49.9

41.9
40.8

35.6
35.2

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19

2008 Annual Toronto Region Innovation Gauge

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