Canadian Group Warns Of Tech Drain To Asia - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Canadian Group Warns Of Tech Drain To Asia

A recent warning by one of North America’s largest technology advocates indicates that the U.S. isn’t the only nation nervous about rapidly developing Asian countries.

TAIPEI, Taiwan — A recent warning by one of North America’s largest technology advocates indicates that the U.S. isn’t the only one nervous about rapidly developing Asian countries.

The Information Technology Association of Canada (ITAC) said earlier this week that public policy makers must pay close attention to the incentives countries like China, , Japan, South Korea, Taiwan and India have put in place to lure high-tech investment and well-educated expatriates to their shores. It also noted that select European countries are asserting themselves as well.

Among the findings of an ITAC report issued this week were:

  • In 2003, Japan introduced tax incentives designed to stimulate investment by Japanese companies in information and communications technology (ICT) machinery and software. Firms investing in ICT have the option of either a 10 percent tax credit or a special depreciation allowance equivalent to 50 percent of the acquisition cost of technology.

  • China deploys a range of measures including depreciation schemes, investment allowances and allowances for technological innovation.

  • South Korea offers a tax credit for acquisition of machinery and equipment by small companies. It also offers a tax credit specifically for productivity-enhancing facilities of 7 percent. South Korea is also one of a number of countries that offers tax credits for training in ICT use. Others that offer incentives for ICT training include France, Austria and the Netherlands.

    ITAC said Canada is lagging in its incentives for technology investment and training, and described measures taken in Asia as “alarming” because they may prove very effective in shifting technology investment overseas.

    "The link between ICT investment and productivity growth is well established," said ITAC President and CEO Bernard Courtois. "We believe that if the government is serious about improving productivity, we need to take serious measures to stimulate the adoption of ICTs. But technology alone isn't enough. A real barrier to the full exploitation of the benefits of technology — especially among small and medium-sized enterprises — is having the skill to use technology effectively.

    We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
    Comment  | 
    Print  | 
    More Insights
  • State of the Cloud
    State of the Cloud
    Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
    IT Careers: Top 10 US Cities for Tech Jobs
    Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
    Predictions for Cloud Computing in 2020
    James Kobielus, Research Director, Futurum,  1/9/2020
    What's Next: AI and Data Trends for 2020 and Beyond
    Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
    Register for InformationWeek Newsletters
    Current Issue
    The Cloud Gets Ready for the 20's
    This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
    White Papers
    Twitter Feed
    Sponsored Live Streaming Video
    Everything You've Been Told About Mobility Is Wrong
    Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
    Sponsored Video
    Flash Poll