A new study has quantified the economic weight of Saskatchewan’s technology sector for the first time, finding technology isn’t just a growing industry, but an economic force.
“It became obvious that just saying that the tech sector was becoming part of the economy of Saskatchewan … was insufficient,” said Aaron Genest, SaskTech Association president. “We needed to be able to quantify that in some way.”
Saskatchewan’s technology sector generated an estimated gross domestic product of $4.7 billion in 2018 — 5.7 per cent of the province’s $82.16 billion GDP, according to the study commissioned by SaskInteractive, a Regina-based advocacy group for tech workers.
“It’s a significant part of the economy and it’s growing faster than any other part of the economy,” Genest said.
There are more than 5,000 technology companies in the province, mostly in Saskatoon and Regina, according to the study by analysis company Nordicity.
About 52,300 people work tech jobs in Saskatchewan. Of those workers, 31,700 are employed directly by tech companies, while the remainder work in technology jobs at other industries.
Tech workers make an average of $76,000 a year, the study says. While that’s 43 per cent more than the provincial average, it’s smaller than wages in technology hubs like San Francisco, where the cost of living is much higher.
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That makes local companies more competitive for attracting investment, Genest said.
“There’s a bit of a knife edge that we have to walk,” he said.
“If we are paying too much in labour, venture capitalists, who are already a little bit cautious about investing in companies from Saskatchewan — a place they don’t know very well and that has uncertainties that they don’t necessarily understand — will not be investing here.
“On the other hand, of course, if we’re too low, we can’t attract the talent we need.”
Tech salaries, along with money from companies’ export sales, are significant revenue generators for the province, Genest said.
That means investing in educational institutions focused on technology, he said.
While there’s been significant investment in startups, Genest said investment in mid-range companies looking to hire new employees will also be crucial going forward.
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