A spatial analysis of small- and medium-sized information technology firms in Canada and the importance of local connections to institutions of higher education

As part of community/regional development policy, governments in Canada attempt to create conditions that stimulate the formation of high-technology clusters and, in so doing, often encourage firm-university/college liaisons. Information technology (IT) is an important segment of the high-technology sector, and small- and medium-sized Canadian IT firms are disproportionately attracted to large metropolitan areas (with Toronto, Ottawa-Hull, Vancouver, Calgary, Montreal, Kitchener and Edmonton being the most noteworthy). A nearest neighbour analysis suggests that small- and medium-sized IT firms are clustered within the metropolitan setting, and a nearest neighbour hierarchical spatial clustering technique demonstrates that intra-urban IT agglomerations can be objectively identified. The linkages between small- and medium-sized IT firms and higher education institutions are, on average, not strongly entrenched within Canada's IT culture, although many of these firms still connect with universities or colleges through co-operative programs and other means of employee recruitment and via general networking with faculty members. Thus, governments may be able to support IT cluster formation by encouraging firm-university/college connections that centre on student participation.