Jobs and innovation: Tracking progress and results
Investment, scale-up and clean growth
Target: Double the number of high-growth firms in Canada from 14,000 to 28,000 by 2025
Figure 9.1: High growth firms in Canada (based on revenue growth)
Canada's Innovation and Skills Plan aims to double the number of high-growth, high-impact firms in Canada, from 14,000 in 2014 to 28,000 in 2025. These growth-oriented companies tend to create more high quality jobs for Canadians.
Description of Figure 9.1
| Year | Number of high-growth companies |
|---|---|
Sources:
| |
| 2011 | 11,950 |
| 2012 | 11,500 |
| 2013 | 14,280 |
| 2014 | 14,060 |
| 2015 | 14,330 |
| Target | |
| 2025 | 28,000 |
Figure 9.2: Firm birth and exit rates
The entry of new firms is an important source of productivity growth and technology adoption while exit removes less productive firms. As a result, firm entry and exit are indicators of the dynamism that is essential to a well-functioning economy.
Firm entry and exit rates (which are highly correlated) have been falling since the early 1980s in Canada.
Description of Figure 9.2
| Year | Entry rate (percent) | Exit rate (percent) |
|---|---|---|
Sources:
| ||
| 2000 | 13.1% | |
| 2001 | 14.0% | 12.8% |
| 2002 | 13.9% | 12.6% |
| 2003 | 13.9% | 12.3% |
| 2004 | 15.2% | 12.3% |
| 2005 | 14.7% | 12.8% |
| 2006 | 14.3% | 12.0% |
| 2007 | 14.9% | 12.3% |
| 2008 | 14.2% | 12.4% |
| 2009 | 13.1% | 11.8% |
| 2010 | 13.1% | 11.6% |
| 2011 | 13.0% | 11.6% |
| 2012 | 12.9% | 11.6% |
| 2013 | 12.5% | 11.4% |
| 2014 | 12.5% | 11.4% |
| 2015 | 12.2% | 12.2% |
| 2016 | 12.2% | 11.7% |
| 2017 | 13.0% | 11.7% |
Figure 9.3: Total early-stage entrepreneurial activity
Total early-stage entrepreneurial activity reflects the proportion of a country's working-age population that is operating or preparing to launch a new business. It includes entrepreneurs actively involved in setting up a business as well as new business ownership. In 2017, Canada had the second highest rate of total early-stage entrepreneurial activity in the OECD (19%), up from fourth in 2014 (13%).
Description of Figure 9.3
| Country | 2014 | 2017 |
|---|---|---|
| Chile | 27% | 24% |
| Canada | 13% | 19% |
| United States | 14% | 14% |
| Australia | 13% | 12% |
| Netherlands | 9% | 10% |
| Luxembourg | 7% | 9% |
| Ireland | 7% | 9% |
| Switzerland | 7% | 8% |
| United Kingdom | 11% | 8% |
| Sweden | 7% | 7% |
| Spain | 5% | 6% |
| Germany | 5% | 5% |
| Greece | 8% | 5% |
| Japan | 4% | 5% |
| Italy | 4% | 4% |
| France | 5% | 4% |
Sources: Global Economic Monitor, GEM 2018 / 2019 Global Report | ||
Figure 9.4: Age composition of small firmsFootnote * (2001-2011)
Canada has a greater number of mature small firms relative to other countries, with more than half of all small firms older than 5 years.
Description of Figure 9.4
| Countries | Young (0-5 years) | Mature (>5 years) |
|---|---|---|
Sources: | ||
| BRA | 65.6% | 35.7% |
| ESP | 46.0% | 54.0% |
| HUN | 43.6% | 56.5% |
| GBR | 40.5% | 59.4% |
| FRA | 40.4% | 59.5% |
| NZL | 40.4% | 59.6% |
| LUX | 40.2% | 59.8% |
| NLD | 38.0% | 61.9% |
| AUT | 37.9% | 62.1% |
| USA | 37.2% | 62.7% |
| CAN | 34.2% | 65.8% |
| PRT | 33.5% | 66.4% |
| SWE | 33.3% | 66.7% |
| NOR | 31.7% | 68.3% |
| BEL | 31.1% | 68.8% |
| ITA | 28.0% | 72.0% |
| FIN | 22.9% | 77.1% |
| JPN | 13.9% | 86.1% |
Figure 9.5: Start-up Ecosystems in Global Top 20 (2017)
Canada had two cities (Vancouver and Toronto) ranked among the top 20 in Startup Genome's 2017 Global Startup Ecosystem. Cities such as Montreal, Ottawa and Quebec City were also highlighted for their potential.
| City | Rank (2017) | Change since previous survey |
|---|---|---|
Sources:
| ||
| Silicon Valley | 1 | |
| New York | 2 | |
| London | 3 | 3 |
| Beijing | 4 | NEW |
| Boston | 5 | -1 |
| Tel Aviv | 6 | -1 |
| Berlin | 7 | 2 |
| Shanghai | 8 | NEW |
| Los Angeles | 9 | -6 |
| Seattle | 10 | -2 |
| Paris | 11 | |
| Singapore | 12 | -2 |
| Austin | 13 | |
| Stockholm | 14 | NEW |
| Vancouver | 15 | 3 |
| Toronto | 16 | 1 |
| Sydney | 17 | -1 |
| Chicago | 18 | -11 |
| Amsterdam | 19 | |
| Bangalore | 20 | -5 |
Figure 9.6: Ease of Doing Business Index (2018)
Canada moved up four places since 2017 to rank 18th on the World Bank's Ease of Doing Business Index (2018). More specifically, Canada ranked 2nd out of 190 counties on starting a business.
| Rank (2018) | Change from last year | |
|---|---|---|
Sources:
| ||
| Canada (Global Rank) | 18 | +4 |
| Starting a business | 2 | |
| Dealing with construction permits | 54 | +3 |
| Getting electricity | 105 | +3 |
| Registering property | 33 | +10 |
| Getting credit | 12 | -5 |
| Protecting minority investors | 8 | -1 |
| Paying taxes | 16 | +1 |
| Trading across borders | 46 | |
| Enforcing contracts | 114 | -2 |
| Resolving insolvency | 11 | +4 |