The 2016 Ontario Budget emphasizes the importance of fostering increased exports, as well as investing in Ontario’s skilled talent and innovative small businesses.
Ontario’s Interactive Digital Media sector is well suited to assist the Ontario government to reach these goals, Interactive Ontario believes.
“The IDM sector within Ontario represents one of the most fertile knowledge based industries with growth that is outpacing any other sector,” said Vikas Gupta, CEO of Big Blue Bubble, a local independent mobile gaming company.
Interactive Ontario was invited to participate in numerous discussions over the past year on support mechanisms for the IDM industry with the Ministry of Tourism, Culture & Sport, Ministry of Finance and Treasury Board.
“The strategies announced by the Ontario government will facilitate the creation of even more high skills jobs and will help ease the strain that IDM companies are facing with talent acquisition,” sais Gupta.
Despite the Ontario government’s ongoing support to the IDM sector, it is noted that the reduction to the Ontario Innovation Tax Credit and the Ontario Research & Development Tax Credit is cause for concern. Ontario IDM companies will not benefit from the redirection of the proposed tax credit savings into other key Ontario sectors
“The proposed change in the OITC and ORDTC rates effectively amount to a reduction of more than 20% in tax credits aimed at supporting research and innovation in Ontario,” argues Alexei Gavriline, President of Mobile Capital Network. “This makes Ontario less competitive when it comes to attracting R&D investments and will particularly hurt Ontario small businesses and start-ups which rely on these tax credits to employ highly skilled Ontario talent.”
“Interactive Ontario welcomes continued conversations on how the high-skilled and export-driven Interactive Digital Media sector can help the government in its priorities as set out in the 2016 Ontario Budget,” added Christa Dickenson, Executive Director of Interactive Ontario.
Interactive Ontario is a not-for-profit industry trade association committed to the growth of Ontario’s interactive digital media industry.