10 Groundbreaking Innovations in Toronto’s Tech Sector

Toronto, the fourth-largest tech centre in North America, is home to some of the biggest names in the industry. More than 24,000 tech companies and close to 50 incubators and accelerators call Toronto home—and they are driving innovation in fields such as artificial intelligence (AI), cybersecurity, digital media, fintech and cleantech. Plus, internationally hailed universities like the University of Toronto are leading cutting-edge research with industry movers and shakers, like Geoffrey Hinton, the godfather of AI. Here are 10 groundbreaking ways Toronto is leading the way.

1. All five Big Tech companies operate their Canadian operations in Toronto

Thanks to the city’s diverse talent pool, global tech companies like Amazon, Google, Apple, Microsoft and Meta have set up their Canadian offices in Toronto, alongside homegrown innovators such as Wealthsimple, Wattpad and Shopify. And with Startup Genome recognizing the Toronto-Waterloo Corridor as the number one startup ecosystem in Canada, the city is also attracting tech startups from around the world that are backed by venture capital firms.

2. Toronto has North America’s largest urban innovation hub

There’s no shortage of support for tech startups in Toronto with more than 65 incubators and accelerators, including MaRS, Borealis AI, the Vector Institute for Artificial Intelligence and the Canadian Institute for Advanced Research. MaRS is North America’s largest urban innovation hub and provides support to startups—more than 1,200 to date—and helps accelerate solutions for pressing issues. Fun fact: The hub is built on the site where insulin was first administered.

3. CIFAR is spearheading the world’s first AI strategy

When it comes to AI, Toronto is a trailblazer: The Toronto-based Canadian Institute for Advanced Research (CIFAR) introduced their artificial intelligence, robotics and society program back in 1983. So, it’s no surprise Toronto is continuing to lead the way in the field. CIFAR is spearheading the world’s first AI strategy, a $443 million government project aimed at fostering cross-sector collaboration, training the next generation of leaders and ensuring responsible use.

4. Toronto is home to tech royalty Geoffrey Hinton and Raquel Urtasun

Nobel Prize-winning scientist Geoffrey Hinton, a.k.a. the godfather of AI, continues to conduct groundbreaking research at the University of Toronto. He’s also the co-founder and chief scientific advisor of the Vector Institute for Artificial Intelligence, a private, non-profit AI research institute that encourages top talent from around the world to come to Canada. Raquel Urtasun, who also works with the Vector Institute, is a world-leading expert in self-driving vehicles and founder of Waabi, which is transforming the transportation industry with a generative AI-powered trucking solution.

5. Wealthsimple continues to disrupt the finance industry

Toronto’s finance industry is the second-largest in North America and one of the top 10 in the world and the strength of this sector provides a strong foundation for fintech startups. One Toronto success story is Wealthsimple, which disrupted the trading world by being the first in Canada to offer commission-free trading. It continues to innovate by giving consumers the ability to securely buy, sell and hold cryptocurrency assets via a simple mobile app.

6. Ecobee is powering a better world with cleantech

The city is living up to its Victorian-era nickname, Toronto the Good, as one of the world’s top cleantech startup ecosystems, thanks to the city’s network of academic researchers and energy providers. One early cleantech disruptor is Toronto-based Ecobee, founded in 2007, which created the world’s first smart thermostat—and a more sustainable future. Since its founding, Ecobee has helped customers save more than 28 terawatts of energy with its smart devices.

7. DMZ ranks as the world’s top university-based tech incubator

Tech startups have plenty of resources in Toronto—including for those still in school. DMZ, at Toronto Metropolitan University, is ranked as the top university-based tech incubator in the world by UBI Global. DMZ connects tech startups with customers, capital, experts and a community of entrepreneurs and influencers, helping them scale. Since 2010, DMZ has helped to grow 822 startups, has raised $2.58 billion in seed funding and created more than 5,000 jobs.

8. Toronto’s top universities are leading deep tech R&D

World-class universities like the University of Toronto and Toronto Metropolitan University are leaders in deep tech research and development (R&D), from AI and robotics to quantum computing. Not only are they leading the way in terms of R&D, they are also fostering top-tier talent—16,000 students graduated from Toronto-based STEM degree programs during the 2020-2021 academic year—and helping to foster strong ties between academia and industry.

9. Toronto benefits from some of the world’s best tech-related work permit and visa programs

Canada has one of the best tech-related work permit and visa programs in the world, like the Global Talent Stream, a program that helps companies hire skilled workers in fields such as tech, as well as the Startup Visa Program, which gives permanent residency to entrepreneurs who want to bring their innovative business ideas to Canada. This bodes well for Toronto, as more than three-quarters of new immigrants to Canada move to the Greater Toronto Area. 

10. Toronto has one of the top tech workforces in North America

What fuels these groundbreaking innovations? People. Toronto certainly has one of the top tech workforces in North America: it has the third-largest pool of tech workers—after San Francisco and New York—and is ranked number four among large tech talent markets. But it’s not just about quantity, it’s about quality. Canada has the highest educated workforce of G7 nations and Toronto has more tech degree holders than many other major cities in Canada and the U.S.