Tech’s annual impact on the region’s economy increased from $5.2 billion in 2014, according to a report from the Atlantic Provinces Economic Council, an independent policy research firm that analyzed 463 local digital companies. Most were small; 44 per cent had less than $1 million in revenue and fewer than 20 employees. The industry accounted for three per cent of the region’s total economy. (The Logic)
Talking point: The sector’s growth is a good sign for a part of the country that’s been grappling with out-migration and a shrinking economy. In recent years, federal and provincial governments have targeted the problem with programs like the Atlantic Canada Immigration Pilot, which helped fill some 2,500 jobs across the region in 2018—and which was so successful that Ottawa has used it as a model for a national program for rural communities. Still, the digital economy is growing slower in Atlantic Canada in the rest of the country and the U.S. Attracting private-sector funding to help scale the firms that already exist is one way to close that gap, the report suggests.