The Canadian tech industry is facing a “crisis” of the early 2000s, as tech companies increasingly rely on a technology bubble that was born in the dot-com era.
In a report released Thursday, the National Venture Capital Association said Canada’s top tech firms have been facing a series of challenges including a lack of talent and the difficulty of keeping up with growth.
“There is a significant talent shortage and a lack.
of talent, and there are also a number of challenges with growth and retention, especially for the younger cohort,” said Andrew Sussman, president of the association.”
We have seen companies struggle to retain people and grow in the market.
There is also a lack in innovation and creativity.”
A number of high-profile tech companies have been struggling in recent years, including Apple, Facebook and Google.
The U.S. giant is now a big competitor in China, where the U.N. has warned that it could be forced to pull out of the market, which it started in 2002.
China has also shut down the nation’s largest online marketplaces, including Taobao and Alibaba.
Sussmann said China’s crackdown on the internet is a direct threat to Canada’s technology industry.
“I think it’s going to continue to affect the Canadian tech scene,” he said.
“If China can get its hands on the entire internet infrastructure, we can be left with a whole lot of problems.”
The association also said Canada has a large foreign population and that Canadian companies will be vulnerable to competition from foreign countries if they do not offer “fairness and equity.”
“It is critical that Canada maintain a level playing field for the benefit of all Canadians,” the report said.