Edmonton is fast emerging as a key player in the global tech arena. With a blend of innovation, investment, and strategic location, it’s no wonder the city is attracting tech giants and startups alike. Data from various sources paints a compelling picture of a city in the midst of a technological transformation.
Let’s explore what makes Edmonton’s tech ecosystem so unique.
Edmonton’s Tech Advantage: A Breeding Ground for Innovation
Edmonton offers a unique combination of factors that make it an ideal location for tech companies to thrive:
- A Highly Skilled Workforce: Edmonton is home to several world-class universities, including the University of Alberta, which consistently ranks among the top universities globally for artificial intelligence (AI) research. This translates into a readily available pool of highly skilled and qualified tech talent.
- Collaborative Ecosystem: Edmonton fosters a collaborative environment where tech companies, startups, research institutions, and government entities work together to support innovation and growth. This collaborative spirit fosters knowledge sharing, mentorship, and the development of groundbreaking solutions.
- Affordable Cost of Living: Compared to other major tech hubs in Canada, Edmonton offers a significantly lower cost of living. This makes it an attractive option for startups and tech companies looking to keep operational costs down.
- Government Support: The Alberta government recognizes the potential of the tech sector and has implemented several initiatives to support its growth. This includes providing funding for research and development, offering tax breaks for tech companies, and streamlining immigration processes for skilled tech workers.
What Makes a City a Tech Hub?
A thriving tech hub isn’t built overnight. Several key ingredients contribute to a city’s success in the tech industry:
- A Critical Mass of Tech Companies: A healthy number of established tech companies creates a breeding ground for collaboration, knowledge sharing, and the development of a skilled talent pool.
- Robust Job Growth: A city experiencing significant job growth in the tech sector attracts top talent and fosters a dynamic and innovative environment.
- Economic Impact: A flourishing tech industry injects significant capital into the local economy, creating new businesses, jobs, and opportunities across various sectors.
- Access to Capital: The availability of venture capital funding allows tech startups to flourish and fuel further innovation.
- Supportive Infrastructure: A strong research infrastructure, including universities and research institutions, provides a steady stream of qualified graduates and groundbreaking research.
- Quality of Life: A city with a high quality of life, including affordable housing, a vibrant culture, and access to amenities, attracts and retains talent.
All of the above criteria are fulfilled by Edmonton.
Key Statistics About Edmonton’s Tech Industry:
Edmonton’s ascension as a tech hub isn’t simply a catchy slogan; it’s backed by impressive statistics that paint a clear picture of a thriving and rapidly growing ecosystem.
Let’s delve into the numbers and see why Edmonton is quickly becoming a force to be reckoned with in the tech world:
1. Burgeoning Number of Tech Companies:
According to an article by Taproot Edmonton, there were more than 930 startups and scaleups in the region by Dec 2021. Edmonton boasts a flourishing tech landscape with over 30,400 tech workers as of 2024. This translates to a significant presence of tech companies across various sectors, fostering a dynamic environment brimming with innovation and collaboration. Compared to 2018, the number of tech companies in Alberta has witnessed a staggering 127% increase, highlighting the accelerated pace of growth.
2. Explosive Job Growth:
The tech sector in Edmonton isn’t just adding companies; it’s creating a wealth of high-paying jobs. Over the past five years, the city has witnessed a phenomenal 26% increase in tech jobs.
Edmonton added 12,000 tech jobs between 2015 and 2019, exceeding the number of technology degrees granted in the region [Source]. This indicates that Edmonton is not only producing tech talent but also attracting it from elsewhere.
This impressive growth rate significantly outpaces the national average, indicating a surge in demand for skilled tech professionals in Edmonton. This trend is expected to continue, with projections estimating a 1.5% annual growth in tech jobs for the foreseeable future.
As of 2024, the average salary for an IT technician in Edmonton, Alberta is approximately C$86,983 per year. This figure is based on 18 salaries reported and is updated as of May 15, 2024. A Support Technician in Information Technology (IT) in Edmonton earns an average salary of C$53,943 in 2024. On the other hand, the average salary for a general technician is around $26.52 per hour.
3. Flourishing Venture Capital Landscape:
The lifeblood of any burgeoning tech hub is access to capital. Edmonton is witnessing a significant increase in venture capital (VC) investment, fueling the growth of tech startups and established companies alike.
Alberta’s five-year growth rate for venture capital investment reached an impressive 48.5% at the end of 2023. This is more than triple the national average growth rate of 13%. In 2023 alone, Alberta secured 10.3% of the total investment dollars poured into the Canadian tech sector.
Edmonton, a key player in this ecosystem, saw its venture capital investment triple in 2023. This translates to billions of dollars being injected into Alberta’s tech industry, with Edmonton being a major beneficiary.
4. Economic Powerhouse:
The tech industry isn’t just creating jobs; it’s leaving a significant mark on Edmonton’s economic landscape. Estimates suggest that the tech sector contributes over $11 billion to the national economy, with Edmonton playing a key role in this contribution. This economic impact is multifaceted, encompassing not just direct revenue generation from tech companies but also the indirect benefits of a thriving tech ecosystem, such as increased demand for goods and services across various sectors. (Invest Alberta)
5. Global Recognition:
Edmonton’s tech prowess isn’t going unnoticed. The city is increasingly being recognized on the global stage. In 2023, the Edmonton region secured the fifth position nationally for the number of tech deals. This competitive ranking signifies Edmonton’s growing importance within the Canadian tech landscape and positions it as a force to be reckoned with in the global tech arena. (Startup Genome)
Edmonton’s tech scene compared
But how does Edmonton’s tech scene compare to other Canadian cities? Let’s dig in further.
Fastest Growing Tech Ecosystem: Edmonton has the fastest growing tech ecosystem of any of the 50 North American cities studied, based on total employment in the technology sector. The average growth rate across the 50 cities was 17.6% between 2015 and 2020, while the Edmonton Region saw a growth rate of 53.3% over the same period.
High-Quality Talent at Competitive Costs: Edmonton is tied for the cheapest labor out of all 50 cities, making it an attractive destination for tech companies looking for top talent. Compared to Canadian cities included in the report, Edmonton’s talent trails only Toronto, Vancouver, and Waterloo in terms of talent quality but is much more competitive in terms of cost.
Ranking Among Canadian Cities: Edmonton ranks 10th in a Canadian city ranking based on tech talent appeal. It also ranks third for average wages in the sector and tech diversity.
Comparison with Other Cities: Between 2017 and 2022, Edmonton had one of the highest tech job growth rates in Canada, with a rate of 45%. This is comparable to the growth rates of other major Canadian cities.
Venture Capital Investment: In 2023, the Edmonton region secured the fifth position nationally for the number of deals. The Edmonton region attracted investments worth $188 million in 21 deals, marking a 324% increase from the previous year’s investments of $58 million.
What is the percentage of tech workers in Edmonton compared to the total population?
According to a report by CBRE, there are 34,500 people working in tech in the Edmonton Region. This represents about 5.7% of the total jobs in the region.
Now, you might be wondering, “How does this compare to the total population of Edmonton?” Well, as of the last census in 2021, the population of Edmonton was estimated to be around 1.5 million.
So, if we do a bit of math, we can estimate that tech workers make up about 2.3% of the total population in Edmonton. That’s quite a significant chunk, don’t you think?
Breeding Ground for Innovation: Edmonton’s Tech Sectors
Edmonton boasts a unique blend of factors that propel its tech sector forward. A highly skilled workforce, fostered by top-ranked universities like the University of Alberta, meets a supportive government environment and a collaborative spirit. This winning combination positions Edmonton as a prime location for tech startups and established companies alike.
So, what are Edmonton’s hottest tech sectors? Let’s explore!
Edmonton’s tech industry is a kaleidoscope of innovation, with a strong presence in various sectors:
- Artificial Intelligence (AI) and Machine Learning (ML): The University of Alberta, ranked #3 globally for AI research [Choice Marketing, The Tech Hub of the North: Exploring IT Companies in Edmonton], acts as a powerhouse for AI talent and development. Companies like DeepMind Technologies and Adastra leverage this expertise to push the boundaries of AI and ML applications.
- Clean Technology (Cleantech): Edmonton boasts over 400 Cleantech companies, pioneering sustainable solutions in areas like renewable energy and energy efficiency. Greengine, an award-winning company, is a prime example, developing innovative battery storage technology.
- Life Sciences and Biotechnology: Edmonton is a hub for life sciences research, with organizations like the Alberta Institute for Regenerative Medicine at the forefront of groundbreaking discoveries.
This diverse tech ecosystem fosters collaboration across sectors, leading to the development of next-generation solutions for a brighter future.
Leading tech startups in Edmonton
Edmonton is home to a vibrant tech startup scene. Here are some of the leading tech startups based in Edmonton:
- Bazaarvoice: Bazaarvoice connects brands and retailers to their customers’ voices, helping them make smarter shopping decisions1. They provide user-generated content programs and expand global multichannel strategies.
- Cobalt Robotics: Cobalt Robotics provides indoor security guard robots as a service. Their robots work together with remote human operators to keep customers safe.
- Vellgus: Vellgus is one of the leading AI-powered software development companies in Canada. They create new AI applications or upgrade existing ones, providing unique and fully customized solutions.
- GiantByte Software: GiantByte offers custom software and app development and consulting services.
- Seward Consulting Ltd: Seward Consulting provides a range of IT consulting services.
- Intuit: Intuit is a global financial platform company with products including TurboTax, QuickBooks, Mint and Turbo, designed to empower consumers, self-employed and small businesses to improve their financial lives.
- Bitcoin Well: Bitcoin Well offers convenient, secure and reliable ways to buy, sell and use bitcoin through a network of Bitcoin ATMs across Canada.
- Wipro: Wipro is a leading global information technology, consulting and business process services company.
- Concentrix: Concentrix is a technology-enabled global business services company specializing in customer engagement and improving business performance.
- Jobber: Jobber is a business management software for small home service businesses.
These startups and companies are taking a variety of approaches to innovating the tech industry and are well worth following for their exceptional performance and innovative ideas.
FAQs: Edmonton’s Tech Industry
How is the Alberta government supporting Edmonton’s tech industry?
The Alberta government is actively supporting the tech sector through several initiatives:
- Funding for Research and Development: The government provides grants and funding opportunities to support research and development projects in the tech industry (Invest Alberta).
- Tax Incentives: Tax breaks and incentives are offered to tech companies to encourage investment and growth (Alberta Technology Innovation and Emissions Reduction (TIER) program).
- Streamlined Immigration: In Canada Immigration processes for skilled tech workers are streamlined to attract international talent to Edmonton.
What role do universities in Edmonton play in the tech industry?
Universities in Edmonton, particularly the University of Alberta, play a crucial role in the tech industry by:
- Providing Highly Skilled Graduates: Producing a steady stream of graduates in tech-related fields who are ready to enter the workforce.
- Leading Research Initiatives: Conducting cutting-edge research in areas such as artificial intelligence, machine learning, and biotechnology
- Fostering Innovation: Supporting tech startups and entrepreneurs through incubators and accelerator programs.
What is the quality of life like in Edmonton for tech professionals?
Edmonton offers a high quality of life for tech professionals, which includes:
- Affordable Housing: Compared to other major Canadian cities, Edmonton offers more affordable housing options.
- Vibrant Culture: A rich cultural scene with numerous festivals, theaters, and museums.
- Access to Amenities: High-quality healthcare, education, and recreational facilities are readily available.
What are the future prospects for Edmonton’s tech industry? The future prospects for Edmonton’s tech industry are promising:
- Continued Job Growth: Projected annual growth of 1.5% in tech jobs (CBRE Canada).
- Increased Investment: Rising venture capital investment and government support will further fuel the tech ecosystem (Invest Alberta).
- Global Recognition: Growing recognition on the global stage as a leading tech hub (Startup Genome).
How does Edmonton compare to other Canadian tech hubs? Edmonton holds its own against other Canadian tech hubs by:
- Cost-Effectiveness: Offering a lower cost of living and doing business compared to cities like Toronto and Vancouver.
- High-Quality Talent: Providing access to top-tier talent from local universities and attracting professionals from around the world (Startup Genome).
- Fastest Growing Ecosystem: Having one of the fastest growing tech ecosystems in North America (CBRE Canada).
