The Information Technology Landscape in Canada

 

About Canada

Telecommunication
Infrastructure

Privatization and Deregulation

Internet Activity

e-Commerce

Hardware Manufacturing
Software Development

IT Usage

IT Labor Market
IT Geographics
IT Financing
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
Sources and Links
About the authors

Government policies in Canada

The Canadian government is actively involved in promoting both domestic and international e-commerce. On the domestic side, in keeping with its "Connecting Canadians Initiative," the government established an e-commerce strategy which was incorporated in September 1998. The strategy involves the Federal government working in consort with the provinces, the territories, and the private sector to develop trust, clarify rules, and provide Internet access. The strategy encompasses these seven key points:

    1. a technology-neutral taxation regime
    2. a policy on cryptography
    3. legislation governing the protection of personal information
    4. a legal framework for digital signatures and electronic documents
    5. guidelines for consumer protection
    6. a Canadian electronic commerce standards "roadmap"
    7. a policy framework for the Government of Canada's public key infrastructure.

On the international side, Canada is working with other countries and member nations of the Organization for Econimic Co-operation and Development (OECD) for the growth of international e-commerce. In October of 1998, the OECD conference on international e-commerce was held in Ottawa.

The government has instituted the E-commerce Task Force as an entity within Industry Canada as the primary focal point within the agency for e-commerce development.  [Strategis - Industry Canada's business Web site]

Doing business with government agencies in Canada is a win-win situation. The government gets better prices, 15 to 20 percent better, and companies get motivation and assistance to go on-line. An e-commerce intermediary, Cebra Inc., a wholly-owned subsidiary of the Bank of Montreal, facilitates the process through its Internet-based service, Merx. The service lists solicitations for bids from federal, provincial, and municipal governments along with those of universities and other organizations. The Merx site has been in operation for two years and has connected about 35,000 Canadian companies with approximately 290,000 government orders. Merx provides for a level playing field for offerors on government contracts, and the business they win provides e-commerce trickle-down to other areas of the economy. To further facilitate B2B e-commerce, Cebra also offers TotalTrade, a secure connection, Internet-based service for exchanging orders, invoices, payments, and other information. All that is required by the business is computers, Web access, and about $35 per month to use the service.  [Marron, Kevin, Where the real action is]

The Canadian government has added $1.8 billion over the next three years in new spending for a knowledge-based economy. The spending is supposed to encourage more research and innovation and will be allocated to creating, disseminating, and commercializing knowledge, along with hiring knowledgeable people to support the effort. A new job-creation program will receive $465 million and $430 million will go to the Canadian Space Agency. The knowledge spending is 10 percent of the overall new spending in the government budget and is exceeded only by 65 percent which is going to health care. However, a large portion of the health care spending will be in knowledge-based areas of the medical field.  [Tuck, Simon, 'Knowledge' spending to rise by $1.8-billion]

The Canadian recently expressed a commitment to become the most connected government in the world by 2004. The Information Technology Association of Canada (ITAC), the voice of the Canadian information technology industry, believes that, in the world today, what appears to be a reasonable goal can be easily surpassed by the competition. In that light, the organization praised the government's commitment but called for acceleration of the target date by 21 months. That is for 80 percent of major government departments and agencies to become a "model on-line user" on or before March 31, 2003. ITAC provided recommendations to aid the government in accelerating the date, including:

  • "Create a champion of electronic government of the highest level of government reporting to the Prime Minister's Office. That champion should have a budget sufficient to effect strategic, enterprise-wide change in the organizational culture necessary to transform the Government into a knowledge-based institution.
  • The e-government champion should produce an annual report to Cabinet documenting the progress of each department.
  • The champion should be advised by a cross sectoral board representing business and civilian stakeholders.
  • Accelerate implementation of the Government's public key infrastructure.
  • Implement the practice of analyzing all new legislation from an e-government perspective, to promote the development of solutions that are user-friendly and technology enabled."

[News Release, ITAC Recommends More Aggressive Pursuit Of Electronic Government]


Federal Financial Assistance for Information and Communications Technologies

Sources of Assistance - Regional Agencies:

Atlantic Canada Opportunities Agency (ACOA)
Canada Economic Development for Quebec Regions
Federal Economic Development Initiative for Northern Ontario (FedNor)
Western Economic Diversification (WD)
CANARIE:
Wireless Telecommunications R & D Investment Program
Advanced Network Applications, Services and Technologies Program (ANAST)
Advanced Applications Development Program
Learning Program
DND/NSERC Research Partnership Program
Information Technology and Telecommunications Loan Program
Technology Partnerships Canada
Knowledge-Based Industries Loan Fund program
Technology Inflow Program (TIP)
Technology Partnerships Program
Program for Export Market Development (PEMD)
Networks of Centres of Excellence
International Trade Personnel Program (ITPP) by Western Economic Diversification
Industrial Research Assistance Program (IRAP)
Canada Economic Development Agency:
IDEA-SME Program
Loan Program for Knowledge-based SMEs
Loan Program for Technology Firms
SME Techno Access Program
INNOVATION, R&D
Business Development Bank of Canada
 

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Sarah Alijani sa0565a@american.edu  &  Richard Wright rightrf@aol.com ________________________________________________________________________________________
Last update: December 17, 1999