Information technology sector growing rapidly in Atlantic Canada, says APEC

SAINT JOHN, N.B. - Atlantic Canada's information communication technology sector has expanded by almost 50 per cent over the last decade, but the region needs to spend more on technologies, said an Atlantic Provinces Economic Council report released Tuesday.
The industry contributed an estimated $2.65 billion to the regional economy in 2008, 3.7 per cent of GDP, up from 2.5 per cent in 1997 - a 48 per cent increase.
New Brunswick was slightly ahead of the average at 3.9 per cent, up from 2.7.
But the East Coast lagged behind the national average of 4.4 per cent of GDP in 2008, up from 2.9 per cent in 1997.
Despite the comparative position, David Chaundy, the think-tank's chief economist, said the regional growth is a positive trend that must continue.
"Where is the potential growth in this region coming from?" Chaundy said. "ICT is going to be an increasingly important part of the global economy."
As the world becomes more computerized and technology becomes more advanced, companies producing the goods and services will generate more wealth for their region.
These technologies can also make any business more productive, but companies in Atlantic Canada aren't buying enough of the products and services, Chaundy said.
Organizations spent $1,690 on ICT per worker on average in 2007, only 80 per cent of the national $2,110 ICT investment per worker.
"We've slipped behind the rest of the nation in terms of investments on software, computers and other technologies," Chaundy said. "We're going to slide further behind if we don't catch up."
New Brunswick spent the least on technology at $1,630 per worker, but Nova Scotia helped bring the average down as well only spending $1,670 per employee, while Newfoundland and Labrador and P.E.I. spent $1,770 and $1,860 per worker, respectively.
"New Brunswick has had a history of leadership in the telecommunications sector," Chaundy said, referring to the McKenna-era call centre boom. "But are we still seeing the broader ICT investment?"
This is a top concern for the New Brunswick IT Council. The three-month old organization will develop a program throughout this quarter to encourage more ICT investment.
"We're going to work on communicating the opportunities technology can bring," said Scott MacIntosh, co-chairman of the council.
The APEC report said the region has 2,000 firms employing 32,000 people, paying them about 20 per cent higher wages than the average for all other industries.
Given these numbers, LeBlanc said the sector's growth is encouraging and needs to continue.
"Do we need more high-paying jobs?" he said. "Absolutely."