Quebec’s world-class research ecosystem is booming. In 2021, the region is an innovative hub with talents, from both the academic and the business world, and tax incentive programs for research and development projects. Clusters, universities, and research centers are cohabiting in a strategic international location which still has a more affordable living in its cities than many others metropolis… and the big tech companies are aware of those advantages.

This article presents the attractive ecosystem and incentives Quebec has to offer, especially in the sector of health and life sciences, in the thriving world of AI, in the ever-growing batteries and electric vehicle development and in the future of green hydrogen and of quantum in Quebec.

Quebecers are willing to work on innovative research and complex projects from international collaborations, especially in fields mentioned above. With offices in more then 32 locations around the globe, Quebec has a world presence and is currently celebrating 50 years of cooperation with Germany, where its Délégation Générale is present with offices in Munich and in Berlin.

Interested? Learn more in this article and please contact Anna-Lena Gruenagel, Director Foreign Direct Investment, German-speaking and Eastern Europe,  at Investissement Québec, anna-lena.gruenagel@invest-quebec.com, for more information.

We thank the Délégation Générale in Munich, Marianne Pauchant, Project Manager of the Economic Department and Anna-Lena Gruenagel, Director Foreign Direct Investment, German-speaking and Eastern Europe,  at Investissement Québec, for their input and support to create this article.

Québec, a world-class tech hub

Québec is known for its strong presence in Canada, succeeding in a variety of high value-added sectors, including AI and video games, visual effects, cybersecurity, and information technology. This prosperous tech hub accounts for 23% of jobs of the technology ? sector in the country and is the Canadian R&D leader in % of GDP, with more than $9,7 billions in annual R&D spending by businesses and universities. Quebec’s world-class research ecosystem is growing, supported by a vast network of talents, tax incentives and quality of life.

Québec got qualified 1st among G7 countries for talent attractiveness in AI according to the OECD (2019). In fact, a pool of qualified experts is already on site: Quebec has nearly 25,000 university students enrolled in IT programs and 18,000+ university students in AI and data processing related programs. Over the years, nearly all German research organization have developed programs and permanent liaison offices in Canada. Now there are almost 700 cooperation agreements between the two countries.

To help further, multiple Scientific Research and Experimental Development (SR&ED) tax incentive programs entitle companies to a 15% tax credit from Canada and a 14% refundable credit from Québec (depending on the region) on all wages and subcontracting fees. Also, tax holidays for foreign research and experts permit to kick start many collaborative projects. There is also an increase in the number of funding programs and number of SME recipients as SMEs play an ever-growing role in the innovation ecosystems of Quebec and in Europe.

Moreover, the region offers competitive costs. Not only the average operating cost have an advantage of 25% compared to other major regions in Canada and U.S, but it also has one of the lowest tax rates in North America and its lowest electricity rates. Being in a strategic location also promotes international cooperation and spark the writing of trade agreements (the CETA is one example). Unlike other top destinations for EU investment in the Americas, only Canada has investment treaties in place with all 27 EU member states. The region is well connected as 20 strategic commercial ports, 4 international airports and 1 integrated railway connects a network between Canada, US, Mexico, and Europe, giving access to 1.5+ billion consumers.

Key sectors (examples)

Having those advantages provides a fertile environment for developments and innovation in many key sectors. The health and life science sector, AI, and new technologies (green and high tech) exemplify just how Quebec is at the avantgarde when it comes to R&D.

Life sciences and health technology

The collaborative ecosystem in Quebec’s life sciences and health technology has public-private partnership projects which involves 650+ companies, 45 000+ workers (about 30% of the jobs in this field in Canada), 30 000 university and college students, 4 university-affiliated hospitals, and 300+ research organizations. Moreover, with $7.4+ billion in investment in ongoing projects for a cutting-edge healthcare infrastructure in Québec, the future of the sector looks very promising. The province developed a cutting-edge health infrastructure and an ethical framework to access data that increased Québec’s expertise in the pharmaceutical sector, as well as in biomanufacturing, digital health, big data and AI, precision medicine, genomics, etc.

AI in Québec

Montréal is hosting world-renowned research organizations, such as MILA, Institute for Data Valorisation (IVADO) and Institute Intelligence and Data (IID). For example, Mila is the world’s largest academic research centre specialized in machine learning with over600 people. The metropole always ranks high as best place to invest in AI in North America, being in the top 3 currently. As mentioned earlier, it has a vast collaborative ecosystem with more than 80 industrial partners.

Green initiatives and future technologies

Quebec wishes to be more and more sustainable and to become a carbon-neutral economy. As mentioned above, its electricity isn’t as expensive as it’s neighbors´ It is sourced from 99.8% renewable energy, principally hydropower. With this advantage, it was possible to create a leading-edge ecosystem and expertise based on green hydroelectricity, wind, biomass and further sources. It also permits to manufacture one of the least polluting primary aluminium in the world (7 times less polluting than aluminium production in China).

The future of mobility is also a recurring theme in Québec. A strategic plan is in place to work on battery technologies, especially against the background of Québec’s abundant critical and strategic minerals needed for their construction. Personalities such as Karim Zaghib, strategic Advisor to the Investissement Québec Management Committee and Professor at McGill University’s Mining and Materials Engineering Department, pointed out Québec’s other significant assets for the future of batteries. To name a few, Quebec has become a world authority in battery R&D with over 850 patents, with its expertise in making electric vehicles and with its different strategies which would totalize public and private investments of $7 billion over the next 10 years.

To go further

Now that Germany and Canada are celebrating 50 years of their official Scientific and Technological Cooperation, and with the support of economical, social, and structural incentives, Quebecers are eager to collaborate on international projects in R&D and to continue to attract world class researchers and companies in the fields described as well as in the rapidly burgeoning sectors of the hydrogen economy and quantum technologies.

To learn further on opportunities of cooperation, do not hesitate to contact Anna-Lena Gruenagel, Director Foreign Direct Investment, German-speaking and Eastern Europe,  at Investissement Québec, anna-lena.gruenagel@invest-quebec.com.

You can also find more information, including testimonials from German companies who chose Québec,  by visiting Investissement Québec’s website (in German): https://www.investquebec.com/quebec/en/financial-products/all-our-solutions.html

For further information on Investissement Québec in English:

https://www.investquebec.com/international/de/Kontakt-fr.htm

We thank the Délégation Générale in Munich, Marianne Pauchant, Project Manager of the Economic Department and Anna-Lena Gruenagel, Director Foreign Direct Investment, German-speaking and Eastern Europe,  at Investissement Québec, for their input and support to create this article.