Earlier this summer we noted how Accelerate Okanagan was performing an analysis of the region’s technology sector alongside KPMG, following up on an Economic Impact Study for the Okanagan Tech Sector from 2017.
Several regional organizations, including the City of Vernon, the Central Okanagan Economic Development Commission, Tourism Kelowna, Okanagan College, UBC Okanagan, and the Kelowna International Airport, came out in support of the updated study.
“Benchmarking and understanding the performance of a sector is critical for informing policymakers and allocating resources,” commented Krista Mallory, Manager at the Central Okanagan Economic Development Commission, in June.
In 2017, the Okanagan region boasted nearly 700 tech businesses and a tech workforce north of 12,000 persons creating $1.7B in economic impact.
Many were curious as to how these numbers have evolved in the seven years since.
“The ultimate goal of the study is to assist in talent attraction, companies, and investment in the region, as well as inform policymakers and the media,” reads an executive summary of the report. “The region’s tech ecosystem is a powerful engine of economic growth fuelled by connectivity and collaboration.”
As of 2023, the region boasts 787 tech companies, an increase of roughly 100 since 2017.
The report also found that these several hundred tech firms now account for more than 30,000 jobs and contribute nearly $5 billion toward British Columbia’s annual gross domestic product—figures much higher than those registered in 2017.
A strong majority of tech firms in the Okanagan region are privately held, KPMG’s analysis found, with more than 60% of them less than a decade old. More than half are profitable.
While the report pitches primarily positive news, there does remain a list of concerns worth addressing.
“The Okanagan tech sector faces diverse and complex challenges that reflect shifting economic conditions,” reads the report.
Challenges include the remoteness of the region relative to other major tech hubs, as well as the higher cost of living.
“The struggle to easily access growth capital and tech talent is a universal issue, but it’s magnified in the Okanagan by the region’s distance to major urban centers,” the report states, adding that “The cost of living is the most formidable barrier for those living and working in the Okanagan,” especially as it relates to acquiring and retaining junior employees.
In conclusion, the region’s “unique blend of natural beauty and cutting-edge innovation has made it a powerhouse of technological advancement with a steady rate of growth.”
In order to continue this trajectory, however, the report urges that “we must rally around how we can remove obstacles for business owners and promote economic growth.”
Leave a Reply