According to a story by Jack Kapica, “Globetechnology: Canadian high-tech sector shows signs of growth” (Globe and Mail Update, March 4, 2005), Statistics Canada is reporting that the high-tech sector is showing high rates of entry of new businesses which show that financial backers see opportunity. The high rates of entry could lead to strong employment growth. The Statistics Canada report is titled “An anatomy of growth and decline: high-tech industries through the boom and bust years, 1997-2003“. Here is the abstract:
This paper tracks the growth and decline of information and communications technology (ICT) industries that were synonymous with the so-called new economy boom of the late-1990s and its subsequent bust period in the early 2000s. The analysis focuses on the question of whether the ICT bust has been accompanied by a structural shift illustrated by less firm turnover. It shows that to date there is little evidence of a structural shift. Entry rates of new establishments within the ICT sector were above those of other sectors within the economy during both the ICT boom and bust. This is evidence that both firms and entrepreneurs continued to see opportunities to develop new products and markets even during a time of retrenchment. The location of the ICT sector also showed little evidence of a change.