In point of fact, after the United States, Canada has the world second-largest share of e-commerce activity. On a proportionate basis Internet usage in Canada is actually slightly greater than it is here: an estimated 60 percent of Canadians are connected to the Internet compared with 57 percent of people in the United States.

One of Canada’s most dynamic industrial sectors is the information communication technology (ICT) field, and it’s one in which interesting new developments are taking place all across the country.

A key focal point of growth in the Canadian ICT industry is the province of Ontario. With 10 million people, Ontario is Canada’s most populous province. It’s also a place where a tremendous amount of research and development activity is taking place.

In 2001, Ontario saw about $2.9 billion (Canadian) invested in R&D, a sum that accounted for nearly three-quarters of total Canadian R&D expenditures. The province is also home to 58 of Canada’s Top 100 corporate R&D spenders, and collectively, R&D investments made by these organizations accounts for 77 percent of total spending by the Top 100.

An important driver of R&D activity in Ontario has been the provincial government, which has a strong interest in supporting science and innovation. Through programs such as the $1.5 billion (Canadian) Ontario Research and Development Challenge fund, which is designed to facilitate collaboration between public research organizations and the private sector, the Ontario government has made a strong commitment to assisting the growth of knowledge-based industries.

What’s especially significant about R&D expenditures in Ontario is that about half of them are directed toward the ICT industry. There are more than 8,000 ICT companies located in the province, and an estimated 300,000 Ontarians work in the industry. Not surprisingly, Ontario is also the place where you’ll find some of Canada’s most important centers of ICT activity.

One of these locations is Toronto, the largest city in Canada, and the acknowledged business and financial center of the nation. Toronto is also a city that has more than 31,000 high-tech companies, and it is one that is rapidly establishing itself as being a global center of excellence in new media and the Internet. One clear indication of Toronto’s growing importance as an ICT center is the fact that global technology powerhouses such as IBM, Motorola and Microsoft have chosen to locate their Canadian headquarters in the city.

Another example that illustrates Toronto’s success in the ICT sector is the growth the computer animation industry. Ontario currently produces 25 percent of the world’s computer animation software, and the bulk of this activity is concentrated in the Greater Toronto region.

Sheridan College, located in the Toronto suburb of Oakville, offers what is widely considered to be one of the best computer animation programs in the world.

Alias/Wavefront, a Toronto-based company, has established itself as the world’s leading innovator of 3-D graphics technology. Alias/Wavefront’s technology has been used in the production of blockbuster hits such as “Spiderman,” “Lord of the Rings” and “Harry Potter,” and this year the company chalked up an Academy Award for its MayaTM 3-D animation and effects software.

Another hotbed of ICT activity in Ontario is the region known as “Canada’s Technology Triangle” (CTT), which lies about an hour’s drive west of Toronto. Bounded by the municipalities of Kitchener, Waterloo and Cambridge, CTT contains about 500 technology companies that collectively generate an estimated $6 billion (Canadian) in annual revenues.

Companies in the region employ about 35,000 people and are known for their cutting edge expertise in fields like software and microelectronics.

A major driver of business activity within the CTT region is the University of Waterloo, a school that is widely acknowledged to be one of North America’s leaders in the fields of science and technology.

In refreshing contrast to more traditional academic institutions, the University of Waterloo is also known for its strong entrepreneurial bent, and some of Canada’s most successful technology companies trace their roots back to research which has been done at the university.

A case in point is Waterloo-based Research in Motion (RIM), a leading provider of wireless solutions for the mobile communications market. RIM was originally founded as a spin-off company of the University of Waterloo in 1984. Four years later, it became the first wireless data developer in North America. Today, its products provide seamless access to time-sensitive information such as e-mail, messaging and Internet-based applications.

Among the award-winning innovations that RIM has introduced to the global market are the Wireless HandheldTM product line and the BlackBerryTM.

The many advantages of the CTT region have attracted the attention of the U.S. technology industry. One American company that has made an important commitment to the region is California-based Arvato Services, a provider of integrated and customized outsourcing to Fortune 500 companies.

In May, Arvato Services announced that the company would open a new customer support services center in Kitchener, Ontario, a city that lies in the heart of the CTT. Arvato’s investment will create about 250 new jobs by the end of the summer. In explaining why they picked the CTT, Arvato executives cited the region’s growing reputation in the global technology industry and the availability of qualified customer support personnel.

Nova Scotia Makes Impact

Another part of Canada that’s making some impressive strides forward in the ICT industry is Nova Scotia. With a population of slightly less than 950,000, Nova Scotia has more than 1,200 companies doing business in the ICT field, many of which are clustered around Halifax, the largest city in the province. About 13,000 Nova Scotia residents work in the technology sector, and the number is growing rapidly.

A big part of Nova Scotia’s success in ICT can be attributed to the investments the province has made in its technology infrastructure. Nova Scotia has the most widely deployed broadband network in Canada, with service provided to 44 percent of its communities Since 1998, Nova Scotia has been 100 percent digital, and fiber optic rings, ISDN and high-speed ATM switching are available throughout the province.

Another important contributing factor to the growth of the ICT industry in Nova Scotia has been the province’s network of universities. Halifax, home to six degree-granting institutions that enroll more than 30,000 students every year, has the highest ratio of universities to total population of any major North American center. Sixty-three percent of the city’s working-age population has some form of post-secondary education, making Halifax an ideal location for any technology company.

One of Nova Scotia’s most commendable ICT success stories has been the experience of Acadia University, located in Wolfville, an hour northeast of Halifax. Several years ago, thanks to the vision of Kelvin Ogilvie, president of the university, Acadia made a major commitment to integrating laptop computers and the Internet into every facet of its programs.

Today, the Acadia Advantage initiative is widely seen as offering a model for the wired university of the 21st century. Employers throughout the world, anxious for the technological and analytical skills that Acadia students bring with them, are snapping up graduates.

Still another region which is experiencing a great deal of progress in the ICT sector is Montreal, whose 3.5 million inhabitants make it Canada’s second largest city. Montreal has about 100,000 people currently working in the ICT field, earning the city a No. 9 ranking among North American centers in terms of total employment.

Local economic development officials believe that Montreal has all the right fundamentals in place to rapidly evolve into a global ICT powerhouse. For one thing, the city is home to four highly regarded universities that collectively receive 23 percent of the total funding for university research in Canada. These institutions also keep Montreal ICT companies with a steady supply of well-trained graduates.

The best known of Montreal’s universities is McGill, an institution often referred to as the “Harvard of Canada.” McGill enjoys an international reputation for leadership in many scientific fields, and research conducted at the university has played an important role in driving the growth of Montreal’s technology industry.

It looks likely that McGill will an even more significant contribution in the future. During the next decade, the university plans to hire 1,000 new professors, and construction of a new science and engineering complex is currently underway.

Access to readily available financing has been another advantage for ICT companies located in Montreal. For one thing, it’s estimated that approximately 40 percent of the venture capital in Canada is concentrated in the city. Another boon to the industry has been the very generous tax incentives for knowledge-based industries that are offered by the Quebec government.