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Kanata North Total Kanata North Economic Impact Analysis 2018 2 This report, Kanata North Economic Impact Analysis 2018, is the second of two reports published by the Kanata North Business Association: • to assess economic indicators in Canada’s largest technology park The results from the 2018 • to provide a tool for decision-makers in attracting investment and talent report are clear: Kanata North • to understand the contributions of Kanata North to the economies of is a growing economic and Ottawa, Ontario, and Canada innovation powerhouse. • to provide benchmark measurement data to enable community and The contributions to government business leaders to manage and maximize at the municipal, provincial, and federal levels are stronger This economic impact analysis shows Kanata North continues to be an economic and than ever in our 50-year history. innovation powerhouse, exceeding all expectations and growing at an accelerated rate. Kanata North continues to go from strength to strength in Given the excellent statistics from our 2015 report, we were excited to discover that our innovation, market-leading growth trajectory has continued unabated and, in fact, it has increased. Whether it’s jobs, product developments, and net revenues, productivity, or net returns to government at municipal, provincial, and federal in attracting investment and levels, Kanata North continues to live up to its moniker: Canada’s Largest Technology Park. world-class talent. We have some of the best homegrown tech talent in the world right here in the area. And, at - Amy MacLeod the same time, we are attracting some of the best tech talent and businesses in the world to Chair of the Board of Directors, do business here. Kanata North Business Association We look forward to continuing this tradition in the years to come, creating jobs and innovation to benefit Canada and the world. #SeriousTechLivesHere Kanata North Economic Impact Analysis 2018 3 The Kanata North Business Association (KNBA) undertook an exhaustive review of its economy in 2015 which indicated positive economic impact at the municipal, provincial, and federal levels. Our 2018 report In 2018, KNBA updated the research and its findings are demonstrates Kanata North exceptionally positive: In three years, Kanata North has grown the continues to grow and deliver number of high tech companies and increased both its revenues value at an accelerated rate. The Kanata North Business and employment. The increases in this three-year period far Association is fulfilling its exceed the previous six-year period. The growth curve’s upward mission to advocate for trend is verging on exponential. business success by fostering an environment where the best talent in Canada can innovate, create connections, and make an impact. Working again with respected technology research firm Doyletech Corporation, KNBA articulated three major objectives: - Jamie Petten Executive Director, 1 Update the economic impact of Kanata North in 2018, Kanata North Business Association using the 2015 data as a baseline 2 Analyze the results to guide investment, outreach/ promotion, and talent attraction decisions 3 Understand the contributions of Kanata North to the economies of Ottawa, Ontario, and Canada Kanata North Economic Impact Analysis 2018 4 It was imperative that the same • Export: “Export” refers to the methodology used in 2015 was employed companies (usually referred to as the The indicators researched and for 2018 to ensure the results are high tech sector) which contribute to assessed by sector and subsector comparable. The research team used the economic base of Kanata North, include the following: three key elements: i.e., they supply goods and services that earn income from outside the • Total revenues • Database: They built an exhaustive local area. • Employment database of local firms by visiting • Export ratio: revenues derived from every commercial building, conducting • Local: “Local” refers to companies outside Kanata North or Ottawa : email and telephone inquiries, within Kanata North that provide within Kanata North or Ottawa interviews, and web-based research, professional services such as legal, • Productivity: sales per employee and literature reviews. finance/accounting, and marketing minus the proportion of inputs from and other services such as restaurants, outside the region (also known as • Primary research: The team retail, hospitality, and construction/ “leakages”) interviewed 40 people in 34 separate renovation. • Local/regional spending: Earnings, interviews, covering all nine export interest, depreciation and sectors in Kanata North, including amortization, and general and large, medium, and small enterprises. administrative funding • Econometric impact modeling: Using the proprietary Doyletech EconWin computer model, the research team projected the total impact of Kanata North including direct, indirect, and induced effects. Kanata North Economic Impact Analysis 2018 5 Kanata North Economic Impact Analysis 2018 6 $13 BILLION $391,000 Net value-add of Average net contribution Kanata North to Canada’s GDP +66% per employee +53% increase over since 2015 $7.8 billion in in Kanata North 2018 2015 Note: $90,000 is the average 2015 contribution per employee in Canada 4x NATIONAL AVERAGE +18% +12% +9% compared with compared with compared with 19,477 16,513 in 2015 29,376 26,325 in 2015 33,236 30,679 in 2015 Note: 10,000+ indirect and induced jobs have been generated in Ottawa/Eastern Ontario = 29,376 Total Tech/Export Sector region due to the Kanata North success. + 3,860 Total Local Sector TECH/EXPORT SECTOR TOTAL TECH/EXPORT SECTOR TOTAL JOBS (INCLUDES JOBS IN KANATA NORTH ONLY) (INCLUDES JOBS IN KANATA NORTH AND ACROSS THE REGION) Kanata North Economic Impact Analysis 2018 7 $170.5 MILLION $1.96 BILLION Returns for Ottawa +16% Returns for Ontario +40% municipal government since 2015 provincial government since 2015 $1.99 BILLION Returns for Canada +47% federal government since 2015 Kanata North Economic Impact Analysis 2018 8 KANATA $7.2B +30% +13% NORTH since 2015 543 since 2015 TOTAL $5.6B 481 (Direct Impact) 2018 2015 REVENUES # OF COMPANIES TECH/ $6.3B +38% +21% EXPORT since 2015 261 since 2015 SECTOR $4.6B 215 (Direct Impacts Only) 2018 2015 DIRECT REVENUE # OF COMPANIES Kanata North Economic Impact Analysis 2018 9 INNOVATION TALENT Kanata North continues to attract innovators and The research indicates that the requirement to expand entrepreneurs enthusiastic to identify opportunities the talent pool has grown over the past three years. The and create new ventures. Kanata North is also a magnet for need for highly qualified STEM professionals is on a steady, world-class workers at all levels. This powerful combination upward trend. Kanata North will continue to create is one of the major reasons Kanata North has grown into strong community involvement and engagement that an economic and innovation powerhouse, exceeding all will attract, nurture and retain talent. expectations and growing at an accelerated rate. TECHNOLOGY ECOSYSTEM IMPACT AND GLOBAL LEADERSHIP Kanata North is focused on nurturing a thriving Kanata North is a leader in the pace of strategic technology community through thought leadership innovation globally, allowing Kanata to retain its status and collaborative, strategic partnerships leading as a world-class innovation and technology cluster. to future growth and sustainability. One example of Kanata North companies are driving disruption and such partnerships includes strengthening the connection contributing to emerging fields such as artificial intelligence, between academia and industry. The recent announcement machine learning, connected and autonomous vehicles, that the University of Ottawa will build a campus in Kanata cybersecurity, the Internet of Things, and 5G. North is a step in working with post-secondary Institutions to foster a thriving tech ecosystem. Kanata North Economic Impact Analysis 2018 10 HALO EFFECT Kanata North’s bustling and growing economy is having a “halo effect” on surrounding areas of the city. On one hand, this has led to issues with public transportation, traffic congestion, and the cost of rental space - all of which are being addressed and solutions worked on within future planning. On the other hand, it means that the indirect economic benefits to neighbouring communities such as Kanata South, Kanata West, Bells Corners, and Carleton Place are strong and could be included in future research. Kanata North is a powerful economic engine specializing in high impact technology which makes it a great place to learn, to work, and do business. It is also a great place to live with beautiful green space, excellent schools and recreation facilities, and a rich ecosystem of retail and business services. Kanata North looks forward to continuing its work with all stakeholders – current members, partners and allies, and all levels of government – to capitalize on Kanata North’s strengths, to leverage their collective impact, and to continue to generate economic opportunities. In addition, Kanata North welcomes the opportunity to build new partnerships and alliances. We invite all interested parties to be in touch and experience firsthand why Kanata North continues to thrive and be the economic and innovation powerhouse that it is. #SeriousTechLivesHere Kanata North Economic Impact Analysis 2018 11 OTHER TECHNOLOGIES This subsector, the largest in Kanata The second largest by employment and This category includes companies such as North, by both employment
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