Opinion: From potential to stagnation: The cost of Canada’s insular approach to growth 

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Canada holds immense potential with rich resources and a highly educated workforce. Yet, a persistent “Go-It-Alone Syndrome” hinders progress. This inclination to protect investments and funding by operating solely within provincial or municipal boundaries stifles growth and innovation. While Canada cautiously stays within its borders, the U.S. embodies a collaborative spirit, integrating cross-state partnerships and fostering ambitious projects from startup to unicorn. 

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In my work developing the Canadian Cybersecurity Network, I offered open collaboration opportunities: free API access, IP sharing, and low-risk innovative project partnerships. The response was consistent, but disappointing, expressions of interest followed by hesitance and withdrawal. This reluctance to engage beyond localized zones reflected a broader issue: Canada’s protective stance over regional interests at the expense of broader-scale collaboration. 

The Canadian tech landscape is marked by stories of missed potential. Nortel Networks, once a global telecom powerhouse, collapsed under the weight of poor strategic decisions and its inability to adapt through partnerships. BlackBerry, which dominated the smartphone market, maintained a closed ecosystem while competitors like Apple in the U.S. thrived through open collaboration and integrations. Such cases reveal how Canada’s isolated approach can contribute to stagnation and decline. 

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The U.S., on the other hand, showcases how embracing partnerships can propel companies to global leadership. Tesla, for example, grew through strategic alliances and sharing its IP to stimulate innovation in electric vehicles. Companies like Google and Amazon leveraged extensive networks that transcended state lines, spurring innovation and sustaining their positions as industry leaders. This culture of collaboration has cemented America’s reputation as a hub for tech growth and entrepreneurship. 

A telling indicator of Canada’s struggles is the ongoing brain drain of tech talent. According to the Brock University study, “Reversing the Brain Drain: Where is Canadian STEM Talent Going?”, talent migration is highest in software engineering (66 per cent), computer engineering (30 per cent), computer science (30 per cent), engineering science (27 per cent) and systems design engineering (24 per cent). The vast majority move to the U.S. for three main reasons: higher pay, firm reputation and a greater variety in work scope. 

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University of Waterloo graduates, in particular, experience peer pressure with the “Cali or bust” mentality, aiming to work for prestigious American tech firms. Faculty at Canadian universities remain largely neutral on where graduates choose to work, contributing to the issue. Notably, scholarly literature suggests brain drain negatively impacts a country when the migration rate for the highly educated surpasses 20 per cent — a threshold Canada is exceeding in critical tech fields. 

Canada must shift its insular mindset. Our collective hesitation undermines growth, leaving potential untapped and innovation stifled. To evolve, Canadian leaders must break the cycle of regional isolation and cultivate an open, connected approach that rewards partnerships. Only by embracing national and global collaboration can Canada transform into a powerhouse of innovation that commands international respect. 

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The time to change is now. If Canada continues to play it safe, it risks stagnation while more enterprising nations surge ahead.  

From unfulfilled opportunities in personal experiences to the tech sector’s historical failures and the ongoing brain drain, the lessons are clear: Canada must bridge its divides, embrace collaborative growth and unlock the potential of unified innovation. Only then can it compete on the global stage and reclaim its role as a leader in tech and innovation. 

Francois Guay is the Founder of the Canadian Cybersecurity Network

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