A slew of international tech companies – Google, Uber, Samsung, Microsoft, Amazon – have committed to or expressed interest in setting up shop in Toronto. If you’re a homegrown startup or scaleup you can’t help but think about the implications of having these giants in your backyard.
Companies often expand their footprint to lower costs, access specialized talent or for a host of other reasons. It’s not new. They aren’t the first international companies who want to set up shop in Toronto, and won’t be the last.
And why not? Toronto is a world-class city with some of the best universities in the world producing some of the finest technical and business talents. We’re home to an incredibly diverse community who have the perspective and understanding to solve global issues and build products and services that work for the world.
Colleagues and friends have recently been asking me for my take on these moves. Are they helpful or harmful to the city and the local tech ecosystem?
In my opinion, we should welcome these moves – but be wary of them.
When a few foreign companies decide to move to a burgeoning city, they can help build a critical mass that directly supports homegrown companies by spurring interest in the region. They attract high caliber talent and then provide opportunities for these employees to hone their skills and learn new ones so they can further develop into well-rounded and in-demand workers.
But too many foreign companies in a single locale can make it seem like they’ve colonized the area, leaving little room for local businesses. It gets too difficult to compete, too expensive to stay in your backyard. Think about this: If data is the new oil, do you really want all the ‘oil companies’ to be foreign-owned?
So it’s not a choice of either-or. Having zero international companies who operate locally won’t stimulate the ecosystem. With too many foreign companies, locals lose the ability to control their our own destiny, and eventually, ideas and innovation become stifled.
For now, I welcome these new companies into our backyard but make no mistake, it can never replace building our own homegrown giants. I’m certain that the incredible Toronto tech ecosystem will continue to make waves regardless of who moves next door.