The Toronto-Waterloo Corridor: Canada’s Home for Top Tech

This tech-savvy hub is fueled by its dynamic ecosystem, world-class talent, big brands and innovative industries and research. In this article, we’re exploring why this region, the beating heart of Canadian tech innovation, is so desirable to companies looking to grow internationally.

The Corridor stretches 105 kilometers between the cities of Toronto and Waterloo, Ontario, connected by Canada’s 401 superhighway. So, why exactly do companies continue to expand here? Let’s get into it.

Read our first segment to learn why Waterloo has made a name for itself in manufacturing.

An incubator for world-class talent

Home to more than 473,000 students across 16 post-secondary institutions, the Corridor is home to two of Canada’s top three tech universities, the University of Waterloo and the University of Toronto.

Not only are they both ranked in the global top-25 for their computer science programs and global top-30 for their engineering programs, but they also have two of the largest computer science schools in the world. So, rest assured, you’ll find an abundance of highly skilled talent to fill your pipeline.

Not only does the Corridor nurture homegrown talent, but it also attracts top-tier professionals from around the globe. With H-1B Visa acceptance rates steadily declining in the US over the last four years, more companies are looking to Canada as a reliable alternative.

With 30% of its population being immigrants, Ontario walks the talk when it comes to welcoming diverse global talent. Here, programs like the Global Talent Stream help companies process work permits for their international hires in as little as two weeks.

Where tech titans and trailblazers go

Global brands like Microsoft, IBM, Google, Bosch, EPAM and Intel thrive in this playground for tech innovation, where groundbreaking discoveries and disruptive innovations feel like daily norms. This dynamic environment is equally fertile ground for startups and scale-ups.

Renowned for its leadership in artificial intelligence, cybersecurity, quantum computing, healthtech, fintech, life sciences and more, it’s no surprise to learn that the Corridor was recognized as one of twelve global powerhouse markets in CBRE’s new Global Tech Talent Guidebook 2024. But let’s dive a little deeper:

Artificial Intelligence

The University of Toronto and the University of Waterloo are two of the top three AI research hubs in Canada, ranking 1^st and 3^rd.

The Corridor also has the most AI PhDs in Canada and Toronto has the highest concentration of AI startups in the world. So yes, we guess you could say we take the future of AI pretty seriously. Even Apple recognized the region’s potential, recently acquiring Waterloo tech company Darwin AI for their artificial intelligence expertise and talent.

Fintech

The Corridor also holds the title as the number one fintech ecosystem in Canada and one of the best in North America. Unsurprisingly, it also ranks 7th globally. What about talent?

There are more than 360,000 people powering over 12,000 fintech firms, and our top-notch institutions are driving the fintech workforce of the future with specialized programs. From TD and Manulife to Square and Wealthsimple, fintech companies land here to win.

Quantum

Did you know Waterloo is home to two of the world’s largest quantum and theoretical physics research centres? Perimeter Institute and the Institute for Quantum Computing (IQC) are driving the future of quantum locally and around the world, so it’s fitting that Canada’s $360M National Quantum Strategy is led from here.

We have some big brands doing big things here too, including IBM, ISARA Corporation, HighQ Technologies and Keysight, with Toronto-based quantum computing firm Xanadu reaching unicorn status in 2022.

Cybersecurity

Tech unicorns aren’t just a myth in the Corridor, they’re a reality. 1Password, eSentire, Arctic Wolf and Auvik Networks, to name a few.

McAfee, Oracle NetSuite, BlackBerry, Magnet Forensics and many other major players also dominate the cybersecurity industry from inside this region.

The future of research and collaboration

In the Toronto-Waterloo tech ecosystem, collaboration is key to driving initiatives like Canada’s National Quantum Strategy and the Ontario Chamber of Commerce’s Artificial Intelligence Hub – an industry-academic partnership including Microsoft Canada and WatSPEED at the University of Waterloo.

You’ll also find cutting-edge research centres like the Vector Institute and the Ontario Centre of Innovation involved in industry partnerships.

Thanks to support from tech hubs and incubators like Communitech, Velocity and MaRS Discovery District, startups and scale-ups are set up for success and thrive alongside big brands and industry leaders.

Plus, with generous R&D tax credit programs like SR&ED, companies can save up to 65% on R&D costs, lowering their bottom line and boosting their potential. If you’re looking to innovate here, you’ll find countless opportunities like these.

You’ve got the drive, we’ve got the spark

Technological innovation and the Toronto-Waterloo Corridor share an intrinsic connection. Much like the spark that ignites fuel in an engine, the Corridor acts as a catalyst for brands with big ideas, eager to revolutionize their industries. They just need to come here.