Invest in Canada

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OANADlAN WlPE|ESS SEOTOP
lnformat|on and oommun|oat|ons teohno|ogy ¦lOT} |s one of Oanada`s most |nnovat|ve
seotors, represent|ng a|most 40 peroent of the oountry`s pr|vate |nvestment |n researoh
and deve|opment ¦P&D}, worth an est|mated $5.7 b||||on
1
|n 2006. Te|eoommun|oat|ons
frms-w|red and w|re|ess-dom|nate P&D |n lOT.
Severa| mu|t|nat|ona| te|eoom oompan|es have ohosen to |nvest |n P&D |n Oanada:
Swed|sh manufaoturer Er|osson, for examp|e, has ohosen Oanada as the s|te of
|ts |argest Oentre of Exoe||enoe outs|de Sweden, and A|oate|, Nok|a, Motoro|a and
S|emens, have a|| estab||shed P&D oentres |n Oanada. More than 20 peroent of the
|nvestment projeots announoed |n the wor|d between 2003 and 2006 were te|eoom-
re|ated, and Oanada oaptured approx|mate|y 18 peroent of those, resu|t|ng |n 27 new
projeots
2
.
The Oanad|an government enoourages P&D through generous P&D tax ored|ts to
he|p dr|ve |nnovat|on, and through d|reot support of researoh oentres suoh as the
Oommun|oat|ons Pesearoh Oentre, the Nat|ona| lnst|tute for lnformat|on Teohno|ogy and
the Nat|ona| lnst|tute for Nanoteohno|ogy.
Oanada`s P&D oonsort|um |no|ude TP|abs and the Te|eoom App||oat|ons Pesearoh
A|||anoe, un|vers|ty P&D oentres |no|ude the Emerg|ng Oommun|oat|ons Teohno|ogy
lnst|tute at the Ün|vers|ty of Toronto, and numerous nanoteohno|ogy oentres, suoh as
those at the un|vers|t|es of Toronto, Water|oo, A|berta, MoMaster and Brook. These have
part|ou|ar strengths |n app|y|ng quantum oomput|ng to oryptography, seour|t|sat|on of
doouments and data seour|ty.
Key Capabi|ities
» Cellular equipment: Oanada |eads |n th|s market through the presenoe of
|nnovat|ve oe||u|ar frms suoh as Norte| Networks, S|no|a|r Teohno|og|es and
Pad|an Oommun|oat|ons.
» Mobile devices and CPEs: Oanad|an oompan|es have demonstrated |eadersh|p
through un|que and |nnovat|ve end-to-end so|ut|ons for e-ma|| and data
oommun|oat|ons. |ead|ng-edge oompan|es |no|ude Pesearoh ln Mot|on ¦PlM},
renowned for the B|aokBerry®, and S|erra W|re|ess, w|th |ts oe||u|ar A|rOards.
» WiMAX: Oanad|an oompan|es suoh as Be|A|r Networks, Br|dgewater Systems,
Dragonwave, Ped||ne Oommun|oat|ons, veo|ma Networks and Wavesat have
been ear|y adopters of the ¯W|MA×" 802.16-2005 and 802.16e standards.
Wavesat won the 2008 Teohno|ogy Exoe||enoe Award by Frost & Su|||van for
|ts Orthogona| Frequenoy D|v|s|on Mu|t|p|ex|ng ¦OFDM} oh|pset researoh work.
Ped||ne Oommun|oat|ons was a|so reoogn|zed as one of the frst oompan|es
|n the wor|d to have a oomp|ete W|MA× produot-||ne oert|fed by the W|MA×
forum.
» Software-defned radios (SDRsj: Oanada has been a |eader |n SDP researoh
and oommero|a||zat|on s|noe the Oommun|oat|on Pesearoh Oentre`s p|oneer|ng
work |n ensur|ng the |nteroperab|||ty among d|fferent k|nds of rad|os or other
oommun|oat|on dev|oes.
1 Unless otherwise noted, all values are in Canadian dollars. 2 lBN-Pll 0looal lnvestment location Dataoase

MAJOR GLOBAL INVESTORS
IN CANADA
Alcatel Lucent
Ericsson Canada
Motorola
Nokia
Nokia Siemens Networks
LEADING CANADIAN COMPANIES
BelAir Networks
lcron
Miranda Technologies
Nortel Networks
Psion Teklogix
Redline Communications
Research ln Motion (RlMj
Sierra Wireless
Sinclair Technologies
vecima Networks
voiceAge
Wavesat

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British Co|umbia (BC}
Oonoentrated |n vancouver, there are approx|mate|y 250 oompan|es
aot|ve |n the w|re|ess seotor, generat|ng revenues of approx|mate|y
$1 b||||on and emp|oy|ng 5,500 peop|e. Part|ou|ar strengths |n the
prov|noe`s w|re|ess seotor are |n the areas of mob||e workforoe,
mob||e app||oat|ons, mob||e enterta|nment, |nte|||gent transportat|on
and rugged|zed embedded so|ut|ons. The seotor a|so oompr|ses
serv|oes, suoh as vo|oe and data, and equ|pment manufaotur|ng,
|no|ud|ng |nfrastruoture, phones, PDAs, handhe|d dev|oes and
app||oat|ons software. The top oompan|es |n BO`s w|re|ess seotor
|no|ude G|ente|, S|erra W|re|ess, veo|ma Networks, versat||e
Systems and MDSl Mob||e Data.
Br|t|sh Oo|umb|a a|so hosts a oomp|ement of notab|e pub||o
seotor, aoadem|o and |ndustry researoh fao|||t|es, |no|ud|ng the
Nat|ona| Dom|n|on Pad|o Astrophys|oa| Observatory |ab, Nok|a`s
mob||e term|na| P&D fao|||ty and ÜTStaroom`s tra|n|ng fao|||ty.
A|berta
The A|berta w|re|ess and te|eoom seotor oompr|ses more than
300 oompan|es, emp|oy|ng over 16,000 peop|e and generat|ng
revenues of $3.5 b||||on. A|berta`s expert|se oovers areas
suoh as |nteraot|v|ty, mob||e oommeroe, |ooat|on and mapp|ng
teohno|ogy, te|emat|os, geomat|os and GPS, seour|ty, oontent,
app||oat|ons, serv|oes, broadband teohno|ogy and more.
The prov|noe |s home to |ead|ng w|re|ess oompan|es that
|no|ude Meta4hand, B|aok||ne GPS, Novate|, Wedge Networks,
Hem|sphere GPS, Pedwood Teohno|og|es and Baseband
Teohno|og|es. The researoh base of A|berta`s w|re|ess seotor |s
exemp||fed by organ|zat|ons suoh as TP|abs, the Ün|vers|ty of
A|berta, the Ün|vers|ty of Oa|gary and the Ün|vers|ty of |ethbr|dge.
The Ün|vers|ty of Oa|gary |s reoogn|zed for |ts strengths |n geomat|os
and remote sens|ng teohno|og|es.
KEY OANADlAN O|ÜSTEPS
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Quebec
The Montréal lOT serv|oe o|uster oons|sts of a or|t|oa| mass of
oompan|es emp|oy|ng a tota| of 130,000 peop|e. W|th four
oomprehens|ve un|vers|t|es and seven other |nst|tutes of
h|gher |earn|ng, Greater Montrea| offers a |arge number of
students and un|vers|ty graduates to meet the workforoe
needs of oompan|es |n th|s o|uster. One of the o|uster`s
seotors, lT system and dev|oe manufaotur|ng, br|ngs
together o|ose to 21,000 jobs |n 370 oompan|es, p|us 700
jobs |n 12 aff||ated un|vers|ty oentres.
The o|uster`s |eaders |n oommun|oat|ons |no|ude OMO E|eotron|os,
Er|osson, E×FO, Ü|tra E|eotron|os, M|randa Teohno|og|es, Wavesat
and vo|oeAge. The future |ooks prom|s|ng for lOT s|noe Greater
Montrea| was ranked among the top reg|ons |n Oanada |n 2006-2007
for emp|oyment growth |n h|gh-end teohno|ogy.
OANADlAN O|ÜS OANADlAN O|ÜS
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Ontario
Toronto |s home to over 3,300 h|gh teoh oompan|es, w|th annua| lOT revenues of over $25
b||||on. Many |arge oorporat|ons, |no|ud|ng Norte| Networks, Pogers Oommun|oat|on, and
TE|ÜS he|p to emp|oy the 148,000 |nvo|ved |n the lOT seotor. The mu|t|p|e eduoat|ona|
|nst|tut|ons |n and near Toronto, |no|ud|ng the Ün|vers|ty of Toronto, York Ün|vers|ty, and the
Ün|vers|ty of Ontar|o lnst|tute of Teohno|ogy have a strong traok reoord of produo|ng h|gh|y
sk|||ed emp|oyees and outstand|ng researoh.
Waterloo Region, w|th part|ou|ar strengths |n m|oroe|eotron|os and te|eoommun|oat|ons,
has approx|mate|y 400 h|gh-teoh oompan|es that emp|oy o|ose to 15,000 sk|||ed workers.
Known as Oanada`s teohno|ogy tr|ang|e, the Water|oo Peg|on has a h|gh|y eduoated
workforoe and exoept|ona| eduoat|ona| estab||shments, |no|ud|ng the Ün|vers|ty of Water|oo
and W||fred |aur|er Ün|vers|ty, as we|| as researoh fao|||t|es suoh as Oommun|teoh Pesearoh
Aooe|erator and the Ün|vers|ty of Water|oo Pesearoh and Teohno|ogy Park. Some of the
major estab||shed w|re|ess oompan|es |no|ude Pesearoh |n Mot|on and S|r|fo W|re|ess.
Ottawa |s another |mportant lOT hub, w|th over 1,600 h|gh-teoh oompan|es emp|oy|ng
65,000 peop|e. Ottawa offers part|ou|ar strengths |n te|eoommun|oat|ons equ|pment
and network|ng, and has exper|enoed lOT revenues |n exoess of $10.4 b||||on.
Ottawa`s |ead|ng eduoat|ona| |nst|tut|ons, |no|ud|ng the Ün|vers|ty of Ottawa, Oar|eton
Ün|vers|ty, A|gonqu|n Oo||ege and Ün|vers|te du Ouebeo en Outaoua|s, are ab|e to
support some |arge g|oba| p|ayers suoh as Adobe, A|oate|-|uoent Oanada, Oa||an
Teohno|ogy, O|soo, and M|te| Networks.
lNvESTMENT |OOATlON BENOHMAPKlNG
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METHODOLOGY
Th|s benohmark|ng study assesses the oompet|t|veness of a number of Oanad|an o|usters
aga|nst oompet|ng |nternat|ona| bus|ness |ooat|ons. Based on an |nvestor`s perspeot|ve, the
researoh and ana|ys|s uses a representat|ve |nvestment projeot prototype ¦an operat|on that
produoes w|re|ess te|eoom equ|pment us|ng next-generat|on e|eotron|os teohno|ogy-see
prof|e on page 5} to assess or|ter|a that oorporate deo|s|on makers typ|oa||y exam|ne when
eva|uat|ng |ooat|on a|ternat|ves for fore|gn |nvestment.
Th|s |nternat|ona| |ooat|on benohmark|ng exero|se was oonduoted by lBM-P|ant |ooat|on
lnternat|ona| ¦lBM-P|l}, a renowned g|oba| |ooat|on oonsu|tanoy. lBM-P|l performed
objeot|ve researoh to assess the oomparat|ve oost and qua||ty of do|ng bus|ness |n var|ous
|ooat|ons, s|mu|at|ng the approaoh used by |nvestors when soreen|ng oand|dates for
oorporate |nvestment projeots. The benohmark|ng study exam|ned 250 to 300 fnano|a| and
qua||tat|ve |ooat|on |nd|oators |n the assessment of eaoh |ndustry subseotor.
To assess the qua||ty of a |ooat|on`s operat|ng bus|ness env|ronment, data were oo||eoted
from a var|ety of souroes for the d|fferent subfaotors |n eaoh of the oategor|es featured |n the
operat|ng env|ronment tab|e ¦page 5}. Data for the qua||tat|ve assessment were trans|ated
|nto oomparab|e soor|ngs ¦zero to 10} for eaoh oategory and subfaotor us|ng a we|ghted
sooreboard approaoh. We|ghts were ass|gned to eaoh |ooat|on oategory and subfaotor
to demonstrate the|r re|at|ve |mportanoe |n the |ooat|on se|eot|on prooess. These we|ghts
are speo|fo to eaoh |ndustry subseotor and are based on lBM-P|l`s exper|enoe |n he|p|ng
|nvestors make strateg|o deo|s|ons when ohoos|ng |ooat|ons.
A h|gh-|eve| fnano|a| ana|ys|s was a|so oomp|eted to take |nto aooount major |ooat|on
sens|t|ve |nvestment and operat|ng oosts and revenues for eaoh representat|ve projeot
prof|e. Oash fow projeot|ons have been oa|ou|ated and d|soounted over a 10-year per|od,
|noorporat|ng ant|o|pated |nfat|on rates, to determ|ne the|r net present va|ue and to assess
the proftab|||ty of the projeot |n eaoh of the benohmarked |ooat|ons.
lNvESTMENT |OOA

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lNvESTMENT |OOATlON BENOHMAPKlNG
REPRESENTATIVE PROJECT PROFILE
LA8008
¦HEADOOÜNT = 105}
Eng|neers: 15
E|eotr|oa| and
E|eotron|o Eng|neer|ng
Teohn|o|ans: 43
E|eotr|oa| and
E|eotron|o Equ|pment
Assemb|ers : 31
Maoh|n|sts: 7
Management and
Adm|n|strat|on: 4
Mater|a|s So|ent|sts: 5
NA0h|h£8Y Ah0
£00|PN£hT
OAD $10,000,000
SAL£S
OAD $20,000,000

P80P£8TY
|and: 2.1 aores
Bu||d|ng: 47,344 sq ft
0T|L|T|£S
Power:
¦Month|y Oonsumpt|on}
17,043 kWh
Water:
¦Da||y Oonsumpt|on}
15,000 ga|
0P£8AT|h6 00ST AhALYS|S
P80J£0T 8£00|8£N£hTS F08 F|hAh0|AL N00£LL|h6

OPERATING ENVIRONMENT
* Factor categor] weight, corresponding location factors are ranked in order of importance
6£h£8AL 0£S08|PT|0h 0F 0P£8AT|0hS
W|re|ess te|eoom equ|pment produot|on us|ng next
generat|on e|eotron|os teohno|ogy. The produot|on
of prototype and sma|| |ots of equ|pment us|ng
nanoteohno|ogy, opt|oa|, b|o, or other non-meta|||o
o|rou|ts for app||oat|ons |n w|re|ess te|eoom equ|pment.
k£Y P80J£0T 08|V£8S
· Ava||ab|||ty of sk|||ed |abour |no|ud|ng e|eotr|oa|
eng|neers and mater|a| so|ent|sts
· Presenoe of te|eoommun|oat|ons equ|pment
oompany o|uster
· Aooess to oourses/P&D/supp||ers |n
nanoteohno|ogy and m|n|atur|zat|on
· Aooess to supp||ers of e|eotron|os |ndustry, o|rou|t
boards, sem|oonduotors, and vaouum teohno|ogy
· Prox|m|ty to purohasers of h|gh teoh equ|pment
· Oo||aborat|on w|th un|vers|t|es or |nst|tutes w|th
strong nanoteohno|ogy and optron|os oenters
6£h£8AL 80S|h£SS
£hV|80hN£hT
» 10%*
» Oomp||anoe w|th proteot|on of pr|vaoy regu|at|ons, |nformat|on seour|ty, lP r|ghts,
» Ava||ab|||ty of fnano|a| support & |noent|ves, » Oua||ty of support from |ooa|
government & deve|opment ageno|es, » Bus|ness perm|tt|ng prooedures,
» Eoonom|o and fnano|a| stab|||ty, » Po||t|oa| stab|||ty
L00AL P0T£hT|AL T0
8£080|T Sk|LL£0 STAFF
»35%*
» Presenoe of exper|enoed w|re|ess equ|pment emp|oyees, |no|ud|ng
manufaotur|ng re|ated, » Presenoe of student popu|at|on, » Overa|| t|ghtness |n
the |abour market ¦unemp|oyment}, » Overa|| s|ze of |abour poo|
P8£S£h0£ 0F
|h00ST8Yl0L0ST£8 » 30%*
» Presenoe of |ndustry base, » lmportanoe of P&D, » Market prox|m|ty ¦aooess to
oustomers/supp||ers}, » Prox|m|ty to fnanoe/regu|ators
FL£X|8|L|TY 0F LA8008 &
8£60LAT|0hS » 5%*
» H|r|ng & fr|ng fex|b|||ty, » lndustr|a| re|at|ons/att|tude of un|ons,
» Work|ng t|me regu|at|ons, » Work perm|ts
|hF8AST800T08£ &
00NN0h|0AT|0hS » 10%*
» Oua||ty & re||ab|||ty of lT and te|eoommun|oat|ons, » A|r aooess,
» Pub||o transport, » H|ghway network & oongest|on ¦aooess|b|||ty},
» Pe||ab|||ty of power supp|y
8£AL £STAT£ » 5%* » Ava||ab|||ty of |arge |ndustr|a| s|tes
L|V|h6 £hV|80hN£hT » 5%* » Attraot|veness for expatr|ates, » Oost of ||v|ng,
» Attraot|veness for young |nternat|ona| reoru|ts
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OANADA`S vA|ÜE PPOPOSlTlON
Oanad|an o|t|es are more fnano|a||y attraot|ve than benohmarked
Ü.S. |ooat|ons. |ow oorporate tax rates, P&D |noent|ves and
oompet|t|ve |abour oosts make Oanad|an |ooat|ons, regard|ess of
the|r s|ze, more oost-effo|ent than other North Amer|oan opt|ons for
fore|gn |nvestment |n the w|re|ess fe|d.
*Unless otherwise noted, graphs represent lBN-Pll assessment scores.
A better return on your investment
NSAT, a sate|||te-based mob||e te|ephooy serv|ce deve|oped
by the hat|ooa| 8esearch 0o0oc|| oI 0aoada
OOST ASSESSMENT*
Canadian
Non-Canadian
C$1 = U8$O.8G2
OANADA`S vA|ÜE PPOPOSlTlON
Est|mated annua| |abour oosts ¦h|ghest-rank|ng o|t|es}*
Advantageous |abour costs
ln Oanada, |abour oosts for emp|oyees suoh as assemb|ers,
teohn|o|ans and eng|neers are very oompet|t|ve when oompared
w|th those of other North Amer|oan o|t|es.
An |mportant oontr|butor to Oanada`s |abour oost advantage
re|at|ve to the Ün|ted States stems from |ts nat|ona| hea|thoare
system. ln Oanada, most med|oa| |nsuranoe |s pub||o|y funded,
rather than pa|d by the emp|oyer, resu|t|ng |n s|gn|foant sav|ngs
for emp|oyers.
Med|um and |arge-s|ze |ooat|ons suoh as Ottawa, Oa|gary
and Water|oo Peg|on, as we|| as Oanada`s three |argest o|t|es,
Montrea|, Toronto and vanoouver, a|| prov|de a oost-oompet|t|ve
|abour foroe when oompared to other o|t|es |n the study.
Low business taxes
|ower oorporate |noome tax rates, an |mportant |nvestment
dr|ver, oontr|bute to the h|gh proftab|||ty rank|ng of Oanad|an
o|t|es. Oanad|an o|t|es are |n the top range stud|ed, prov|d|ng
greater proft oash fows to bus|nesses |ooated there. The
Oanad|an tax rate prov|des an appea||ng tax env|ronment for
the |ooat|on of a h|gh va|ue-added speo|a||st manufaotur|ng
operat|on |n the w|re|ess seotor.
Tax reduot|on |n|t|at|ves announoed by the federa| government
|n 2007 w||| g|ve Oanada the |owest statutory tax rate |n the G7
by 2012, at 12 peroent, and the |owest overa|| tax rate on new
bus|ness |nvestment ¦the |owest marg|na| effeot|ve tax rate} |n
the G7 by 2010.
Number of eng|neer|ng students ¦se|eoted o|t|es}***
The peop|e advantage
lnvest|ng |n peop|e |s a oore Oanad|an va|ue. Oanada has the
wor|d`s h|ghest peroentage of oo||ege or un|vers|ty graduates
and |s ranked th|rd g|oba||y for seoondary sohoo| enro|ment,
we|| ahead of the Ün|ted States ¦26th p|aoe}
1
. W|th severa|
un|vers|t|es offer|ng a var|ety of advanoed programs, Oanada
boasts a |arge poo| of new eng|neer|ng graduates who oan
beoome suooessfu| part|o|pants |n the workforoe, he|p|ng
oompan|es stay |nnovat|ve through new |deas and know|edge.
Oorporate |noome taxes ¦|owest tax rates}**

Canadian
Non-Canadian
Canadian
Non-Canadian
*Unless otherwise noted, graphs represent lBN-Pll assessment scores. **Deloitte, 2OO8 ***hational Center for Education 8tatistics, lntegrated
Postsecondar] Education Data, Canadian Engineers for Tomorrow and Various 8ources for U8A/glooal 1 lND world Competitiveness Yearoook, 2OO8
Canadian
Non-Canadian
C$1 = U8$O.8G2
Genera| bus|ness env|ronment ¦h|ghest-rank|ng o|t|es}*
A conducive business environment
Eoonom|o stab|||ty, support from government, support from
|ooa| eoonom|o deve|opment ageno|es, P&D |noent|ves,
prooedures for bus|ness perm|ts, fnano|a| support ava||ab|e
to bus|ness, pr|vaoy regu|at|ons, |nformat|on seour|ty and lP
r|ghts are a|| |mportant oons|derat|ons |n the |nvestment |ooat|on
deo|s|on prooess.
Oanad|an |ooat|ons offer a very strong overa|| bus|ness
env|ronment thanks |n part to generous prov|no|a| and federa|
ored|ts and aooe|erated tax deduot|ons for a w|de var|ety of
P&D expend|tures. The So|ent|fo Pesearoh and Exper|menta|
Deve|opment ¦SP&ED} |noent|ve oovers 20 peroent of
P&D-re|ated oosts, suoh as sa|ar|es, overhead, oap|ta|
equ|pment and mater|a|s, a||ow|ng frms to reduoe P&D
oosts of d|reot |nvestment or suboontraot|ng |n Oanada.
Outstanding qua|ity of |ife
ln the oompet|t|on to attraot g|oba| ta|ent, a h|gh|y rated
||v|ng env|ronment |s an |mportant oons|derat|on |n th|s very
speo|a||sed |ndustry seotor, |t |s a|so another advantage to
|ooat|ng |n Oanada.
W|th |ts natura| beauty, oomparat|ve|y |ow oost of ||v|ng, h|gh
qua||ty of ||fe and va|ues, |t oomes as no surpr|se that Oanada
|s one of the best p|aoes |n the wor|d to ||ve. That |s a|so why
our o|t|es attraot young |nternat|ona| reoru|ts and ta|ented
expatr|ates from around the g|obe.
Some of Oanada`s major o|t|es suoh as vanoouver, Montrea|,
Toronto and Ottawa, oons|stent|y rate h|gh|y |n ||v|ng
env|ronment surveys |no|ud|ng stud|es by Meroer and the
Eoonom|st lnte|||genoe Ün|t.
||v|ng env|ronment ¦h|ghest- rank|ng o|t|es}*
Protecting inte||ectua| property
Both Oanada and the Ün|ted States ma|nta|n v|g||ant patent and
oopyr|ght proteot|on |aws. Deve|opers and manufaoturers of
w|re|ess oommun|oat|on dev|oes us|ng |nnovat|ve des|gns and
teohno|ogy, ||ke nanoteohno|ogy and opt|oa| med|a, re|y heav||y
on proteot|on of |nte||eotua| property to safeguard the|r bus|ness
|nterests.
Aooord|ng to the 2007 lMD Wor|d Oompet|t|veness Peport,
Oanada ranks seoond |n the G7 for patent and oopyr|ght
proteot|on.
Proteot|on of |nte||eotua| property r|ghts ¦se|eoted oountr|es}**

OANADA`S vA|ÜE PPOPOSlTlON
Canadian
Non-Canadian
Canadian
Non-Canadian
Canadian
Non-Canadian
*Unless otherwise noted graphs represent lBN-Pll assessment. **lND world Competitiveness Report, 2OO7
· strategic market inte||igence on your specific sector
· direct contact with key decision-makers in the government
· referra|s to contacts in firms and industry associations, as we|| as experts
· information and advice on setting up a business in Canada
· he|p in identifying a suitab|e p|ace in which to invest
· assistance in deve|oping a business case for your next investment decision
Our global network will show you why Canada is your strategic choice for growth.
To reach an investment officer in your market, please visit:
www.|nvest|ncanada.com/g|oba|network
We offer the fo||ow|ng va|uab|e serv|ces to our c||ents:
Invest |n Canada
·¦ ,o. se.ve
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Email: investincanada@international.gc.ca
Website: www.investincanada.com
This publication was prepared by lnvest in Canada in cooperation with lBM-PLl. The document covers a wide range of issues and is not intended to be a
detailed nor an exhaustive reference. Accordingly, before relying on the material herein, readers should independently verify its accuracy, currency, and
relevance for their purposes and should seek appropriate professional advice. Any reference to companies or investments is for illustrative purposes only
and does not constitute an endorsement of those companies or investments. Details of sources for all quoted facts and figures are available upon request.
The Government of Canada does not accept any liability in relation to the contents of this work. This publication is printed on recycled paper and is available
in multiple languages including French. © Her Majesty the Queen in Right of Canada, as represented by the Minister of lnternational Trade, 2009.
Catalogue Number FR5-38/13-2009E-PDF
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university R&D centres include the Emerging Communications Technology Institute at the University of Toronto. has chosen Canada as the site of its largest Centre of Excellence outside Sweden. Canada's R&D consortium include TRLabs and the Telecom Applications Research Alliance. representing almost 40 percent of the country's private investment in research and development (R&D). Alberta. Telecommunications firms-wired and wireless-dominate R&D in ICT. with its cellular AirCards. These have particular strengths in applying quantum computing to cryptography. Several multinational telecom companies have chosen to invest in R&D in Canada: Swedish manufacturer Ericsson. Waves at won the 2008 Technology Excellence Award by Frost & Sullivan for its Orthogonal Frequency Division Multiplexing (OFDM) chipset research work. for example.16e standards. all values are in Canadian dollars. Sinclair Technologies and Radian Communications. Vecima Networks and Wavesat have been early adopters of the "WiMAX" 802. 2 IBM-PLI Global Investment . » As a true testament of Canada's strength in innovation.16-2005 and 802.Information and communications technology (lCT) is one of Canada's most innovative sectors. McMaster and Brock. Motorola and Siemens. the National Institute for Information Technology and the National Institute for Nanotechnology. and Sierra Wireless. and Alcatel. Waterloo. More than 20 percent of the investment projects announced in the world between 2003 and 2006 were telecomrelated. Redline Communications. resulting in 27 new projects". Nokia.7 billion' in 2006. and Canada captured approximately 18 percent of those. The Canadian government encourages R&D through generous R&D tax credits to help drive innovation. Key Capabilities » Cellular equipment: Canada leads in this market through the presence of innovative cellular firms such as Nortel Networks. Dragonwave. Redline Communications was also recognized as one of the first companies in the world to have a complete WiMAX product-line certified by the WiMAX forum. Leading-edge companies include Research In Motion (RIM). and numerous nanotechnology centres. Ericsson of Sweden more than doubled its research and development operations in British Columbia by 60 jobs in 2008 Location Database 1 Unless otherwise noted. worth an estimated $5. renowned for the BlackBerry®. such as those at the universities of Toronto. have all established R&D centres in Canada. » Mobile devices and CPEs: Canadian companies have demonstrated leadership through unique and innovative end-to-end solutions for e-mail and data communications. securitisation of documents and data security. » Software-defined radios (SDRs): Canada has been a leader in SDR research and commercialization since the Communication Research Centre's pioneering work in ensuring the interoperability among different kinds of radios or other communication devices. Bridgewater Systems. » Wi MAX: Canadian companies such as BelAir Networks. and through direct support of research centres such as the Communications Research Centre.

Particular strengths in the province's wireless sector are in the areas of mobile workforce. generating revenues of approximately $1 billion and employing 5.000 people and generating revenues of $3. broadband technology and more. The research base of Alberta's wireless sector is exemplified by organizations such as TRLabs. The province is home to leading wireless companies that include Meta4hand. mobile commerce. content. handheld devices and applications software. academic and industry research facilities. Vecima Networks. Versatile Systems and MDSI Mobile Data. Sierra Wireless.500 people. Hemisphere GPS. geomatics and GPS. and equipment manufacturing. The sector also comprises services. telematics. intelligent transportation and ruggedized embedded solutions. The top companies in BC's wireless sector include Glentel. there are approximately 250 companies active in the wireless sector.5 billion. Blackline GPS. mobile entertainment. Redwood Technologies and Baseband Technologies. mobile applications. such as voice and data.British Columbia (BC) Concentrated in Vancouver. Wedge Networks. security. including the National Dominion Radio Astrophysical Observatory Lab. British Columbia also hosts a complement of notable public sector. the University of Calgary and the University of Lethbridge. the University of Alberta. including infrastructure. Alberta The Alberta wireless and telecom sector comprises more than 300 companies. applications. Novatel. services. employing over 16. phones. location and mapping technology. The University of Calgary is recognized for its strengths in geomatics and remote sensing technologies. Nokia's mobile terminal R&D facility and UTStarcom's training facility. PDAs. lIl)Ited States of Amer . Alberta's expertise covers areas such as interactivity.

The Montreal ICT service cluster consists of a critical mass of companies employing a total of 130. Rogers Communication. Waves at and VoiceAge. with annuallCT revenues of over $25 billion. The cluster's leaders in communications include CMC Electronics. Ericsson. Some of the major established wireless companies include Research in Motion and Sirific Wireless.Ontario Toronto is home to over 3.000 people. plus 700 jobs in 12 affiliated university centres.000 jobs in 370 companies. and TELUS help to employ the 148. as well as research facilities such as Communitech Research Accelerator and the University of Waterloo Research and Technology Park. . One of the cluster's sectors. including Nortel Networks.4 billion. Many large corporations.600 high-tech companies employing 65. has approximately 400 high-tech companies that employ close to 15.300 high tech companies. Waterloo Region. and Mitel Networks. are able to support some large global players such as Adobe. and the University of Ontario Institute of Technology have a strong track record of producing highly skilled employees and outstanding research.000 people. With four comprehensive universities and seven other institutes of higher learning. including the University of Toronto. with particular strengths in microelectronics and telecommunications. The future looks promising for ICT since Greater Montreal was ranked among the top regions in Canada in 2006-2007 for employment growth in high-end technology. Miranda Technologies. Alcatel-Lucent Canada. Carleton University. including the University of Waterloo and Wilfred Laurier University. Known as Canada's technology triangle. the Waterloo Region has a highly educated workforce and exceptional educational establishments. IT system and device manufacturing. Cisco. Ottawa's leading educational institutions. Ottawa offers particular strengths in telecommunications equipment and networking. including the University of Ottawa. Ultra Electronics. EXFO. Algonquin College and Universite du Quebec en Outaouais. York University. with over 1.000 involved in the ICT sector.000 skilled workers. Greater Montreal offers a large number of students and university graduates to meet the workforce needs of companies in this cluster. Calian Technology. and has experienced ICT revenues in excess of $10. brings together close to 21. Ottawa is another important ICT hub. The multiple educational institutions in and near Toronto.

Cash flow projections have been calculated and discounted over a 1O-year period. Data for the qualitative assessment were translated into comparable scorings (zero to 10) for each category and subfactor using a weighted scoreboard approach. data were collected from a variety of sources for the different subfactors in each of the categories featured in the operating environment table (page 5). A high-level financial analysis was also completed to take into account major location sensitive investment and operating costs and revenues for each representative project profile. to determine their net present value and to assess the profitability of the project in each of the benchmarked locations. the research and analysis uses a representative investment project prototype (an operation that produces wireless telecom equipment using next-generation electronics technology-see profile on page 5) to assess criteria that corporate decision makers typically examine when evaluating location alternatives for foreign investment. This international location benchmarking exercise was conducted by IBM-Plant Location International (IBM-PLI). The benchmarking study examined 250 to 300 financial and qualitative location indicators in the assessment of each industry subsector. These weights are specific to each industry subsector and are based on IBM-PLI's experience in helping investors make strategic decisions when choosing locations. simulating the approach used by investors when screening candidates for corporate investment projects. To assess the quality of a location's operating business environment. IBM-PLI performed objective research to assess the comparative cost and quality of doing business in various locations. Based on an investor's perspective. a renowned global location consultancy. incorporating anticipated inflation rates. Weights were assigned to each location category and subfactor to demonstrate their relative importance in the location selection process.METHODOLOGY This benchmarking study assesses the competitiveness of a number of Canadian clusters against competing international business locations. benchmarking the comparative cost and quality of doing business in global locations II .

000. » Public transport.REPRESENTATIVE PROJECT PROFILE GENERAL DESCRIPTION OF OPERATIONS Wireless telecom equipment production using next generation electronics technology. bio. relations/attitude of unions. »Quality of support from local permitting procedures. and vacuum technology Proximity to purchasers of high tech equipment Collaboration with universities or institutes with strong nanotechnology and optronics centers » » MACHINERY AND EQUIPMENT CAD $10. OPERATING COST ANALYSIS PROJECT REQUIREMENTS FOR FINANCIAL MODElLING LABOUR (HEADCOUNT = 105) Engineers: 15 Electrical and Electronic Engineering Technicians: 43 Electrical and Electronic Equipment Assemblers: 31 Machinists: 7 Management and Administration: 4 Materials Scientists: 5 SALES CAD $20. »Proximity to finance/regulators FLEXIBILITY OF LABOUR & REGULATIONS» 5%* INFRASTRUCTURE & COMMUNICATIONS» 10%* » Hiring & firing flexibility. »Business »Political stability » Presence of experienced wireless equipment employees.344 sq ft KEY PROJECT DRIVERS » Availability of skilled labour including electrical engineers and material scientists Presence of telecommunications company cluster Access to courses/R&D/suppliers equipment in » UTILITIES Power: (Monthly Consumption) 17.043 kWh Water: (Daily Consumption) 15. »Overall size of labour pool PRESENCE OF INDUSTRY/CLUSTER» » Presence of industry base. optical.1 acres Building: 47.000. information security. »Market proximity (access to 30%* customers/suppliers). network & congestion (accessibility). REAL ESTATE» 5%* » Availability of large industrial sites LIVING ENVIRONMENT» 5%* » Attractiveness for expatriates. » Availability of financial support & incentives. »Cost of living. »Jmpcrtance of R&D.000 OPERATING ENVIRONMENT » Compliance with protection of privacy regulations. IP rights. corresponding location factors are ranked in order of importance .000 gal » nanotechnology and miniaturization » Access to suppliers of electronics industry. semiconductors. » Economic and financial stability. or other non-metallic circuits for applications in wireless telecom equipment. »Industrial » Working time regulations. government & development agencies. »Overall tightness in the labour market (unemployment). » Attractiveness for young international recruits * Factor category weight. »Work permits » Quality & reliability of IT and telecommunications. circuit boards. The production of prototype and small lots of equipment using nanotechnology. »Presence of student population.000 PROPERTY Land: 2. »Highway » Reliability of power supply »Air access. including manufacturing related.

Canada offers wireless equipment manufacturing firms many highly cost -competitive locations that provide greater potential for profitability than U. *Unless otherwise noted. regardless of their size. graphs represent IBM-PLI assessment scores. R&D incentives and competitive labour costs make Canadian locations.2 s: 1:1 0 TI Q) 'e<L Q > <L Z fA' v.5 118. 120. more cost-efficient than other North American options for foreign investment in the wireless field.862 6" 140 s II 0> " !!! " 120 .?.4 76.2 62. locations..<i:) 95. COST ASSESSMENT* • • Canadian Non-Canadian C$1 = US$O.7 75. and European alternatives.8 99 .9 105...~ 'I>' A better return on your investment Canadian cities are more financially attractive than benchmarked U.S.1 74.S. Low corporate tax rates. 0 ! '" ~ Ii: 0 100 80 60 40 20 0 .. .7 66.5 81.

Canadian cities are in the top range studied.ver. In Canada..7~% 0% 5% 10%15%20%25%30%35%40%45% Percentage (%) j. NC Chjcago" IL ~~=~=~=~~=~=~~'~3::9~. TX 6. 2008 and Various Sources for USA/global .. Canada boasts a large pool of new engineering graduates who can become successful participants in the workforce.. With several universities offering a variety of advanced programs. and the lowest overall tax rate on new business investment (the lowest marginal effective tax rate) in the G7 by 2010. ON Austn.0 6. an important investment driver... Be Calgary.1 Canadian Non-Canadian C$1 = US$O.Estimated annual labour costs (highest-ranking cities)* Advantageous labour costs In Canada. ac AB BC ~::::::::::295% 31. Toronto.j3:.50% l::===========:_':'j 39.7 7..5 CA ~~--~~--. Toronto.. NC QC ~ Boston.9 7.. technicians and engineers are very competitive when compared with those of other North American cities.. at 12 percent. Medium and large-size locations such as Ottawa. helping companies stay innovative through new ideas and knowledge . Vancouver. 0 N Austin. rather than paid by the employer.. NC vancouver..~6~'26.. well ahead of the United States (26th place)'. Montreal. most medical insurance is publicly funded.5% • • Canadian Non-Canadian Ottawa. ON ~ San Diego.6 • • Canadian Non-Canadian Region. ON ON Ottawa. CA Be . as well as Canada's three largest cities.862 Raleigh-Durham.~~5'9 Reg ion... MA Toronto. TX Jackscnvllre.~~~--~~ 6 8 10 N umber of Stu dents (000'") 12 14 16 *Unless otherwise noted. Montreal. Montreal.J.6 7. Corporate income taxes (lowest tax rates)** Montreal.0 • • 6..2 4. Waterl'oo ON Region.4% 31. The Canadian tax rate provides an appealing tax environment for the location of a high value-added specialist manufacturing operation in the wireless sector.6 4.. graphs represent IBM-PLI assessment scores. Wate~oo TX ON ~!!!!!!!~ ~!!!!!~~ f.. AS Austin.. 97 9-.arv. Ottawa.2 ~ ~ 40 45 5. contribute to the high profitability ranking of Canadian cities. providing greater profit cash flows to businesses located there. Calg. AB San Oieg 0.6 8. 3.. An important contributor to Canada's labour cost advantage relative to the United States stems from its national healthcare system. all provide a cost-competitive labour force when compared to other cities in the study.. Toronto and Vancouver. resulting in significant savings for employers.5% 33. FL Raleigh-Durham.l33'5% l__ =========_:. Canadian Engineers forTomorrow ***National Center for Education Statistics.3 o 2 4 4.5% 33.. **Deloitte.5% J 38 6% Number of engineering students (selected cities)*** The people advantage Investing in people is a core Canadian value. Integrated 1 IMD World Competitiveness Yearbook.2008 Postsecondary Education Data. QC !!!!!!!! 59 Waterloo Jacksonville. Calgary and Waterloo Region. ON vancOI. Canada has the world's highest percentage of college or university graduates and is ranked third globally for secondary school enrolment. Raleigh-Durham. labour costs for employees such as assemblers. Tax reduction initiatives announced by the federal government in 2007 will give Canada the lowest statutory tax rate in the G7 by 2012.0 6.0 Labour 1========~60 ~==T---T---T---T---T---' 6. calgary. FL~~.0 55 60 65 Costs (C$ m'illi on) Low business taxes Lower corporate income tax rates..

overhead. support from local economic development agencies.K 7. According to the 20071MD World Competitiveness Report. Developers and manufacturers of wireless communication devices using innovative designs and technology.1 • 1 7~O • Canadian Non-Canadian 6.2 Ohica.2 7. Canada ranks second in the G7 for patent and copyright protection. ON l::::::::: -t--=======::=: 7. NC ~ 1 ~ii!ii!~~~ __ ----. privacy regulations. 7. 'MA Ottawa.4 ~---------------3. information security and IP rights are all important considerations in the investment location decision process.5 17.o. CA Raleigh·Dllrham. rely heavily on protection of intellectual property to safeguard their business interests. such as salaries. 2007 . like nanotechnology and optical media. IL San Dieqo. procedures for business permits.8 67 • • Canadian Non-Canadian Mexic. Toronto and Ottawa. Canadian locations offer a very strong overall business environment thanks in part to generous provincial and federal credits and accelerated tax deductions for a wide variety of R&D expenditures. AS Austin.g. The Scientific Research and Experimental Development (SR&ED) incentive covers 20 percent of R&D-related costs.0 *Unless otherwise noted graphs represent IBM-PLI assessment.0 6. comparatively low cost of living.OC vancouver. 5. Protection of intellectual property rights (selected countries)** Germany 8. **IMD World Competitiveness Report. CA Newark. 6~7 -r--=======:. allowing firms to reduce R&D costs of direct investment or subcontracting in Canada. BC San Diego.0 Assessment 7.SC MontrMl.4 NC 17. R&D incentives.4 7.8 San Jose.0 Score (O· 10) 8. support from government. 1)( (highest-ranking cities)* A conducive business environment Economic stability. it comes as no surprise that Canada is one of the best places in the world to live. That is also why our cities attract young international recruits and talented expatriates from around the globe.0 6.4 Canada USA Japan U. Montreal. consistently rate highly in living environment surveys including studies by Mercer and the Economist Intelligence Unit.5 Score 8.5 Qualitative • • Canadian Non-Canadian 7.Protecting intellectual property Both Canada and the United States maintain vigilant patent and copyright protection laws. a highly rated living environment is an important consideration in this very specialised industry sector. Calgary.-. ON ~==~ (highest. NY Newark. CA BO$tJJn.3 7. Raleigh-Durham.o o 2 4 6 a 10 sco re (0·1 0) General business environment .3 __J 7~3 Ctlicago.7 4.4 7.4 J 7. financial support available to business.ranking cities)* 7~8 7.4 ] 7.ver. QC Toronto. it is also another advantage to locating in Canada. Some of Canada's major cities such as Vancouver. NJ Boston. Living environment Vancou. MA New York. With its natural beauty.4 7.0 Assessment 7.IL Montreal.0 Qualitative 7. capital equipment and materials.0 (0· 1 OJ Outstanding quality of life In the competition to attract global talent. high quality of life and values.7 6. NJ 17·2 17·2 17·2 6.

We offer the following valuable services to our clients: • strategic market intelligence on your specific sector in the government as well as experts • direct contact with key decision-makers • referrals to contacts • information in firms and industry associations.investincanada. © Her Majesty the Queen in Right of Canada. and advice on setting up a business in Canada a suitable place in which to invest a business case for your next investment decision • help in identifying • assistance in developing Our global network will show you why Canada is your strategic choice for growth. This publication is printed on recycled paper and is available in multiple languages including French. . please visit: www.com/globalnetwork This publication was prepared by Invest in Canada in cooperation with IBM-PLI. as represented by the Minister of International Trade. Details of sources for all quoted facts and figures are available upon request. currency. The document covers a wide range of issues and is not intended to be a detailed nor an exhaustive reference. 2009. To reach an investment officer in your market. The Govemment of Canada does not accept any liability in relation to the contents of this work. Accordingly. Any reference to companies or investments is for illustrative purposes only and does not constitute an endorsement of those companies or investments. before relying on the material herein. and relevance for their purposes and should seek appropriate professional advice. readers should independently verify its accuracy.

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