Waterloo has several ecosystems. Tech, manufacturing, automotive, quantum, you name it. But what does that actually mean? What does an ecosystem look like in practice?
The word “ecosystem” is tossed around a lot in discussions of development. We know, because we’re guilty of it, too. It’s used to describe everything from a city to an industry to a university campus. “Ecosystem” might be one of the most overused words in economic development, right up there alongside “innovation” and “growth.”
However, as is the case with any other buzzword, there’s a reason the term pops up constantly. An ecosystem brings real value in economic development. We want to define what we mean when we say “ecosystem,” and why it’s important to find one that suits your company.
What do we mean by “ecosystem”?
Perhaps you learned about ecosystems in your elementary school. A science teacher might’ve explained that it’s a geographic area where plants, animals and other organisms, as well as weather and landscapes, work together to form an interdependent web.
An economic ecosystem isn’t all that different. It represents a collaborative and interconnected network of organizations and individuals working together to create value and deliver innovative solutions. In an ecosystem, organizations and companies work together. They aren’t trying to fend for themselves in a tech or manufacturing Wild West.
But an ecosystem is more than a collection of like-minded businesses. You also need individual leaders who champion collaboration and innovation, support organizations that underpin successful R&D and universities that produce a steady stream of talent equipped with useful skillsets. These are the plants, animals and organisms that make an ecosystem successful.
The business environment is the weather and landscape, those supporting components integral to the healthy functioning of an ecosystem. Here, we’re referring to access to technology, trade deals, market access and a culture of innovation and curiosity.
Why are mid-sized hubs uniquely suited to ecosystem-building?
Mid-sized hubs can be the ideal environment for a strong ecosystem to take root. A successful ecosystem needs interdependence, trust, collaboration and innovation enablement. Ecosystem strength isn’t about the scale of the community; it’s about the density of relationships.
Mid-sized hubs are large enough to have critical mass—world-class post-secondary schools, established companies, a strong talent pipeline—but compact enough that the people driving innovation frequently meet face to face.
This proximity matters.
Powerful ecosystems grow from repeated, organic interactions and community-building. In a mid-sized hub, like Waterloo region, a university researcher, a startup founder and a corporate R&D leader might share a co-working space, meet at an event or collaborate on a key community project. Over time, these touchpoints build trust, unlocking the interdependence and collaboration that define a true ecosystem. In this web of connections, organizations share ideas and resources, creating a network where each player’s success strengthens the whole system and makes it more innovative.
Where can you find strong industry ecosystems?
Here are some examples:
Waterloo, ON
Waterloo’s nickname is Quantum Valley, since our quantum ecosystem is hailed as one of the best in North America. Our ecosystem’s success emerges from the relationships between several components.
- Two of the world’s most celebrated research centres for quantum theory and experimentation (Perimeter Institute and the Institute for Quantum Computing) are located in Waterloo
- At these institutions, 380+ world-class researchers advance quantum research, discover new theories and work with industry partners to commercialize quantum technology
- The University of Waterloo, one of the top tech and entrepreneurial schools in Canada, offers highly advanced mathematics, physics and software programs
- Canada’s $360M national quantum strategy was announced in the Waterloo region, showcasing collaboration between government and industry
- More than 20 companies, including softwareQ, Keysight Technologies, evolutionQ, ISARA and Anyon Systems, utilize the government funding, top talent and research expertise available in Waterloo to apply quantum to pressing global problems
Toronto-Waterloo Corridor, ON
Although the Toronto-Waterloo Corridor isn’t a midsized hub, it functions as a top-tier fintech ecosystem.
Toronto houses:
- The headquarters for all of Canada’s Big 5 banks
- The Toronto Stock Exchange (TSX), the ninth-largest stock exchange in the world by market capitalization
- Several universities offering top-tier MBA programs, like the Rotman School of Management (University of Toronto) and the Schulich School of Business (York University)
Waterloo offers:
- Top cybersecurity talent from the University of Waterloo and Conestoga College
- One of the top insurance clusters in Canada, with the 5th highest employment per capita
- 70+ fintech companies working in cybersecurity, big data, blockchain and more
- Renowned research labs, such as the Centre for Computational Mathematics, Waterloo Cybersecurity and Privacy Institute and Waterloo Data and Artificial Intelligence Institute
Other prominent examples of top-tier ecosystems in the Waterloo region include our manufacturing, automotive and health innovation sectors.
Key Takeaways
- An economic ecosystem is an interconnected network of companies, research institutions, talent pipelines and a supportive business environment, working together rather than operating in isolation
- Mid-sized hubs like the Waterloo region are uniquely suited to ecosystem-building because proximity drives repeated, trust-building interactions that larger cities have a hard time replicating
- Waterloo’s strengths aren’t limited to one sector — from quantum technology to fintech and manufacturing, the region hosts multiple world-class ecosystems backed by research institutions, top talent and government investment