Technology was still an emerging industry in 2001, according to Bill Tam, CEO of the BC Technology Industry Association.
Technology was a $12 billion industry, employing 69,000 people and contributing $6.5 billion to provincial GDP in 2001. Since then, Tam said, it has grown by more than 50% and is now among the largest industries in B.C.
"The technology industry in B.C. has been the fastest-growing economic segment in the province for the past decade, growing to nearly $20 billion and employing 84,000 people. It is now the third-largest economic sector in B.C. and has the potential to dramatically shape the future economic outlook for the province.
"The Liberal government has been a supporter of the technology industry over the past decade. Progressive policies on competitive tax levels, support for R&D and encouragement of venture capital investments have all contributed to the growth of the industry.
The sector was aided by the federal Scientific Research and Experimental Development (SR&ED) tax credit program and provincial venture capital programs under the Small Business Venture Capital Act.
"Both of these programs have been critical in encouraging R&D investment and attracting early stage capital for new ventures," Tam said.
The programs were further augmented in 2008 with a tax credit to support the clean-tech sector and the B.C. government's establishment of the BC Bioenergy Network.
"In 2007, we worked with the government on the launch of the Renaissance Fund, a $90 million venture capital fund that supports the growth of technology companies in B.C.," Tam said.
During this period, the Liberal government also reduced personal and corporate income tax, making British Columbia one of the most competitive tax jurisdictions in North America, which helped attract multinational tech companies to B.C. It also invested in capacity-building programs such as the BCTIA's Centre4Growth commercial accelerator.
One sector that has been in decline, however, is the computer game sector. A number of Vancouver game studios have closed, and some have moved to Ontario, which has been luring the sector with attractive tax credits.
The BCTIA's recently published 4-Point Plan for Growing BC's Technology Industry recommends:
- doubling the level of venture capital investments in B.C.;
- further investments in talent attraction and training;
- leveraging government procurement to foster a home team advantage for B.C. companies; and
- more investment in building company capacity through programs like Centre4Growth.
