2023–24 Departmental Plan: Supplementary information

Raison d'être

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) works with communities, businesses, not-for-profit organizations and other orders of government in southern Ontario to strengthen the region's capacity for innovation, economic development and growth. The Honourable Filomena Tassi is the Minister responsible for the Federal Economic Development Agency for Southern Ontario.

Mandate and role

FedDev Ontario's core mandate is to strengthen southern Ontario's economic capacity for innovation, economic development and growth. In support of this, the Agency will continue to drive economic growth, innovation and community diversification, with a focus on scaling up businesses, building innovation ecosystems and supporting community development in the region, and ultimately, to promote a dynamic, inclusive and globally-competitive southern Ontario.

FedDev Ontario is a reliable, long-term and trusted partner to southern Ontario's businesses and communities. It supports the government's overall economic agenda in a manner that responds to the opportunities and challenges of the southern Ontario economy.

FedDev Ontario delivers ongoing regional funding streams that are designed to support the commercialization of new technologies, business scale-up and expansion, technology adoption and adaptation, and community diversification and development. The Agency's investments target opportunities created by innovation and inclusivity, positioning the region to become a leader in the shift to a green and sustainable economy.

In addition, FedDev Ontario plays an important role as a federal delivery agent for national programs. The Community Futures Program supports rural communities as they develop and sustain their local economies. The Economic Development Initiative supports Francophone and bilingual organizations in official language minority communities. Black entrepreneurs and organizations are supported through the Black Entrepreneurship Program. The Agency also delivers targeted and temporary national initiatives in southern Ontario that respond to government priorities. These include the Jobs and Growth Fund (JGF), the Canada Community Revitalization Fund (CCRF), the Aerospace Regional Recovery Initiative (ARRI) and the Tourism Relief Fund (TRF). These are key examples of the regional development agencies' (RDAs') ability to respond nimbly to emerging regional needs and priorities.

With its headquarters in Waterloo and offices in Toronto, Peterborough and Ottawa, FedDev Ontario has a presence across southern Ontario and facilitates collaboration with a broad range of stakeholders, including post-secondary institutions, not-for-profit organizations, municipal governments and the Ontario government, Indigenous communities and private sector firms. FedDev Ontario plays an important role in convening key regional stakeholders to seek a common vision and to encourage the development of coordinated plans. In addition, through ongoing collaboration and dialogue with other federal departments and agencies, FedDev Ontario reflects the perspectives of southern Ontario in decision-making at the federal level and provides on-the-ground support in implementing key government priorities.

FedDev Ontario's Small Business Services team delivers services to firms and other stakeholders in the region through its contact centre and website, providing government business information, details about funding opportunities, and a secondary market research service. The Agency works with southern Ontario firms and researchers to encourage and assist participation in large Canadian defence procurements in support of the Industrial and Technological Benefits Policy. FedDev Ontario also supports regional stakeholders to establish Foreign Trade Zone points to facilitate export activity and attract foreign investment. Through the Accelerated Growth Service, Global Hypergrowth Project and the Global Skills Strategy, the Agency works with federal partners to help high-growth firms scale up by providing a coordinated and streamlined approach to accessing federal business support services and facilitating access to global talent.

FedDev Ontario actively works toward greater equity, inclusion and diversity in program and policy development and delivery. This is demonstrated through the Agency's work with the Government of Canada's Anti-racism Secretariat to develop an anti-racism framework to be used as a lens for programming and policy development. FedDev Ontario will continue to advocate for the Government's 50–30 Challenge. This initiative works with businesses and organizations to remove systemic barriers that create inequity, so that full economic benefits can be achieved by everyone participating in the Canadian economy. The Agency's evergreen Framework for Diversity, Equity and Inclusion will continue to be a driving force to increase staff awareness and remove barriers and practices that may impact underrepresented groups

For more information on FedDev Ontario's organizational mandate letter commitments, see the Minister's mandate letter.Endnote 1

Operating context

Southern Ontario is a key contributor to the Canadian economy. The region is home to 13.4 million people, representing over a third of Canada's growing and increasingly diverse population. Ontario also generates $971 billion in Gross Domestic Product (GDP) and the region accounts for nearly 40 percent of Canada's GDP and domestic exports. Nearly half of all Canadian manufacturing exports are produced in Ontario.

The region has a rich industrial heritage, with world-leading strengths in traditional, globally-integrated sectors such as finance, manufacturing, automotive, aerospace, life sciences, information and communications technologies, and agri-foods. Emerging strengths in sectors such as advanced manufacturing, artificial intelligence, autonomous and zero-emission vehicles, big data, fintech, quantum computing, Internet of Things (IoT), biomanufacturing and regenerative medicine all have a footprint in southern Ontario.

Southern Ontario's diverse innovation ecosystem, with over 130 incubators and accelerators and a highly educated labour force with 35 post-secondary education institutions, positions it as a strong enabler of economic growth. Contributors to this economic success include the many aspiring entrepreneurs and venture capitalists that contribute to both the region and Canada's economic growth.

Leveraging its considerable strengths and assets, the southern Ontario economy continues to adapt to the rapid pace of technological and digital innovation, globalization, climate change and social challenges such as an aging population and uneven distribution of economic growth between urban and rural areas. The province is home to over 400,000 firms and nearly 40 percent of the country's high-growth firms. However, many high-potential companies leave Canada to follow lower cost capital and greater access to global markets. Opportunities exist to focus on investments that improve the rate of commercialization to meet that of global peers, and to increase investments in new machinery and technology, which will contribute to increased productivity and competitiveness, and the retention of the region's firms and talent.

Southern Ontario has been on a steady recovery path from the COVID-19 pandemic. However, significant global economic issues, including tight labour markets, inflation and supply chain issues are contributing to slower growth forecasts in the near-term. Some industries, including accommodation and food services, are also lagging behind in economic recovery. This, in turn, is impacting underrepresented groups, such as women, youth, Indigenous Peoples, Black people and other racialized groups and newcomers to Canada who tend to be entrepreneurs in or employed within these sectors.

These situations present both challenges and opportunities that may accelerate over the longer term due to persisting impacts of the pandemic. Remote and hybrid work models are impacting the ability to attract and retain talent in the region. However, the increasing shift to e-commerce, acceleration of touchless technologies and digitization, increased focus on the automation of jobs and adoption of zero-emissions technologies to drive a green transition are areas where southern Ontario can leverage its relative strengths. Continued government support in these key sectors can position the region as a leader in a green and inclusive economy.

Departmental Sustainable Development Strategy

Although FedDev Ontariois not bound by the Federal Sustainable Development Act Endnote 2, the Agency chose to contribute voluntarily to Innovation Science and Economic Development's (ISED) 2020 to 2023 Departmental Sustainable Development Strategy (DSDS). FedDev Ontario has contributed to ISED's corresponding 2021–22 DSDS Report, including applicable reporting on green procurement activities. This report can be found on ISED's website Endnote 3.

Details on transfer payment programs

Transfer payment programs with total planned spending of $5 million or more

Community Futures Program (CFP)

Start date 1986
End date Ongoing
Type of transfer payment Contribution
Type of appropriation Appropriated annually through Estimates
Fiscal year for terms and conditions 2010–11
Link to departmental result(s) Communities are economically diversified in southern Ontario
Link to the department's Program Inventory Community Economic Development and Diversification
Purpose and objectives of transfer payment program Support to Community Futures Development Corporations (CFDCs) that provide community economic development support to small businesses and communities to enhance local development and diversification.
Expected results

Rural communities in southern Ontario are strengthened and better able to respond to future economic challenges. Funding helps communities pursue:

  • Economic stability, growth and job creation;
  • Diversified and competitive local rural economies; and,
  • Economically sustainable communities.
Fiscal year of last completed evaluation 2018–19
Decision following the results of last evaluation Continuation
Fiscal year of next planned evaluation 2024–25
General targeted recipient groups CFDCs located in rural southern Ontario
Initiatives to engage applicants and recipients FedDev Ontario engages with southern Ontario's CFDCs through active project monitoring by program officers and regular meetings with individual CFDCs, the Ontario Association of Community Futures Development Corporations and two regional CFDC networks.

Financial information: CFP (dollars)

Type of transfer payment 2022–23 forecast spending 2023–24 planned spending 2024–25 planned spending 2025–26 planned spending
Total contributions 11,285,992 11,285,992 11,285,992 11,285,992
Total program 11,285,992 11,285,992 11,285,992 11,285,992

Transfer payment programs with total planned spending of $5 million or more

Regional Economic Growth through Innovation (REGI)

Start date October 18, 2018
End date

REGI – Ongoing

Black Entrepreneurship Program – Ecosystem Fund (BEP) – ending March 31, 2024

Jobs and Growth Fund (JGF) – ending March 31, 2024

Aerospace Regional Recovery Initiative (ARRI) – ending March 31, 2024

Regional Quantum Initiative – ending March 31, 2027

Type of transfer payment Contributions
Type of appropriation Appropriated annually through Estimates
Fiscal year for terms and conditions 2019–20
Link to departmental result(s)

Businesses in southern Ontario invest in the development and commercialization of innovative technologies

Businesses in southern Ontario are innovative and growing

Link to the department's Program Inventory

Business Scale-up and Productivity

Regional Innovation Ecosystem

Purpose and objectives of transfer payment program

Under REGI, innovation funding programs across all of Canada's RDAs focuses on two key streams:

  • Business Scale-up and Productivity: To accelerate the growth of firms and assist with the adoption and adaptation of new, innovative technologies that support scale-up, productivity and the development of, and entry into, new markets to help companies become globally competitive.
  • Regional Innovation Ecosystem: To create, grow and nurture inclusive regional ecosystems that support business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness.

REGI also includes temporary funding streams:

  • Black Entrepreneurship Program (BEP) National Ecosystem and Regional Ecosystem Projects: To strengthen the entrepreneurship ecosystem for Black entrepreneurs and business owners across Canada. BEP funds not-for-profit, Black-led organizations to develop new services or expand those they already offer such as mentorship, networking, financial planning, and business training for Black Entrepreneurs.
  • Jobs and Growth Fund (JGF): To provide funding to businesses and organizations to help create jobs and position local economies for long-term growth. FedDev Ontario's support focuses on future-proofing businesses to build resiliency and prepare for growth by transitioning to a green economy, fostering an inclusive recovery, enhancing competitiveness, and creating quality jobs across southern Ontario.
  • Aerospace Regional Recovery Initiative (ARRI): To support small- and medium-sized enterprises (SMEs) and the organizations that support them to green their operations and adopt environmentally sustainable practices, improve productivity and strengthen commercialization efforts while furthering integration into regional and global supply chains.
  • Regional Quantum Initiative (RQI): To support the transformation of the Canadian economy, quantum technologies can advance a wide range of benefits for Canadians, from the design and delivery of new medicines and vaccines, to the creation of new, greener products and approaches to model, track and forecast climate change.

Transfer payments will be repayable and non-repayable contributions.

Expected results
  • Businesses are more innovative, productive and able to scale up and expand operations to maintain jobs and increase the competitiveness of the southern Ontario economy.
  • Southern Ontario's innovation ecosystem supports the needs of businesses and fosters an entrepreneurial environment conducive to innovation, growth and competitiveness.
  • Businesses and supporting organizations are able to expand with meaningful job creation and inclusive growth
  • Black-led organizations enhance their capacity to provide business support services to Black-owned businesses and Black entrepreneurs
  • Aerospace SMEs maintain and enhance innovation, productivity, and competitiveness
  • Companies are able to use quantum technologies to impact local and national economies and environments and bring quantum products to domestic and global markets.
Fiscal year of last completed evaluation N/A (new program)
Decision following the results of last evaluation N/A (new program)
Fiscal year of next planned evaluation 2023–24
General targeted recipient groups

For-profit businesses including small- and medium-sized enterprises, start-ups and multi-national enterprises located in southern Ontario.

Targeted initiatives deliver support to specific groups, including Black-led businesses and Indigenous-owned and led businesses.

Not-for-profit organizations including industry associations, innovation and economic development organizations, business incubators and accelerators and publicly-funded post-secondary institutions located in southern Ontario.

Initiatives to engage applicants and recipients

FedDev Ontario participates in outreach activities, including social media platforms, website communications, conferences, meetings and roundtable sessions with stakeholder groups, to engage potential applicants and support the receipt of quality and complete applications.

When engaging with applicants and funding recipients, FedDev Ontario representatives use a whole-of-government approach, providing pathfinding services to stakeholders where appropriate, receiving referrals from other government departments and agencies and convening stakeholders to action on common priorities.

For funded projects, FedDev Ontario undertakes project monitoring activities that include site visits and regular contact with the recipients regarding reporting and claims requirements to ensure timely progress and completion of projects. FedDev Ontario representatives engage with recipients throughout the project implementation period, including project milestone announcements and communications events.

As an example, FedDev Ontario engages with regional economic stakeholders and for-profit companies through participation in the Accelerated Growth Service and Global Hypergrowth Project initiatives that coordinate government support for high-growth companies located in southern Ontario. FedDev Ontario also works with federal partners on the Global Skills Strategy, helping high-growth firms scale up by facilitating access to global talent.

Financial information: REGI (dollars)

Type of transfer payment 2022–23 forecast spending 2023–24 planned spending 2024–25 planned spending 2025–26 planned spending
Total contributions 259,010,396 299,104,451 153,888,008 145,838,950
Total program 259, 010,396 299,104,451 153,888,008 145,838,950

Transfer payment programs with total planned spending of $5 million or more

Southern Ontario Prosperity Program (SOPP)

Start date April 1, 2014
End date

SOPP – Ongoing

Economic Development Initiative (EDI) - Ongoing

Tourism Relief Fund (TRF) – ending March 31, 2024

Canada Community Revitalization Fund (CCRF) – ending March 31, 2024

Type of transfer payment Contributions
Type of appropriation Appropriated annually through Estimates
Fiscal year for terms and conditions 2014–15
Link to departmental result(s) Communities are economically diversified in southern Ontario
Link to the department's Program Inventory Community Economic Development and Diversification
Purpose and objectives of transfer payment program
  • SOPP – Community Economic Development and Diversification stream: To generate sustainable, inclusive growth and help small and rural communities in southern Ontario to fully participate in, and benefit from, economic opportunities.
  • Economic Development Initiative: To strengthen the region's official language minority communities by promoting innovation, diversification of economic activities and partnerships, and through increased support to small businesses.
  • Tourism Relief Fund: To support tourism businesses and organizations to adapt their operations to meet public health requirements while investing in products, services and tourism experiences to facilitate their future growth.
  • Canadian Community Revitalization Fund: To support communities across southern Ontario build and improve community infrastructure projects so they can rebound from the effects of the COVID-19 pandemic
Expected results
  • Southern Ontario businesses are more competitive, including those in remote and rural areas
  • Southern Ontario communities are more resilient through enhanced business attraction, investment and employment retention
  • Official language minority communities have resources to build their communities and can access economic support in their official language of choice.
  • Tourism businesses, including Indigenous tourism operations, are supported in their recovery from the pandemic
  • Communities across southern Ontario have improved infrastructure and community facilities to help reinvigorate local economies
Fiscal year of last completed evaluation 2020–21
Decision following the results of last evaluation Continuation
Fiscal year of next planned evaluation 2025–26
General targeted recipient groups

SOPP – Community Economic Development and Diversification: Legally incorporated for-profit businesses located in southern Ontario, not-for-profit organizations, including industry associations, economic development organizations, municipalities, Indigenous-led organizations, Community Future Development Corporations (CFDCs), business accelerators and incubators, social enterprises and co-operatives, tourism organizations

Economic Development Initiative: Official language minority communities, including community economic development corporations, not-for-profit organizations, sector associations and post-secondary institutions offering full-time programs of study in French.

Tourism Relief Fund: Businesses; not-for-profit organizations, such as tourism associations; and, band councils or other Indigenous organizations and cooperatives.

Canadian Community Revitalization Fund: Not-for-profit organizations or charities; municipal or regional governments, or bodies providing infrastructure services to communities; Indigenous-led not-for-profits and organizations.

Initiatives to engage applicants and recipients

FedDev Ontario participates in outreach activities, including social media platforms, website communications, conferences, meetings and roundtable sessions with stakeholder groups, to engage potential applicants. The Agency works with potential applicants by responding to inquiries and referrals.

For funded projects, FedDev Ontario representatives undertake project monitoring activities that include site visits and regular contact with the recipients regarding reporting and claims requirements to ensure timely progress and completion of projects. They also engage with recipients throughout the project implementation period and identify opportunities for project milestone announcements and communications events.

Financial information: SOPP (dollars)

Type of transfer payment 2022–23 forecast spending 2023–24 planned spending 2024–25 planned spending 2025–26 planned spending
Total contributions 293,137,038 80,501,650 12,043,859 13,324,330
Total program 293,137,038 80,501,650 12,043,859 13,324,330

Gender-based analysis plus

Institutional GBA Plus Capacity

Throughout 2023–24, FedDev Ontario will continue to leverage the Agency's Gender-Based Analysis Plus (GBA Plus) strategy and will work to align with broader Government of Canada direction and priorities. The Agency's strategy includes short-, medium- and long-term actions, to inform departmental decision-making.

FedDev Ontario has an executive supporting GBS Plus and focal points/gender advisors across key functions in the Agency.

The Agency has made progress in advancing institutional knowledge of GBA Plus. In 2023–24, FedDev Ontario will continue to seek opportunities to further enhance the Agency's knowledge of GBA Plus, such as through continued promotion of the Department for Women and Gender Equality's (WAGE) introductory GBA Plus training and other GBA Plus-related training and courses. FedDev Ontario will also seek opportunities for the Agency's focal points/gender advisors to participate in specialized training, such as the training offered by the Canada School of Public Service that enhances the skills and competencies of Focal Points. The Agency will also leverage and disseminate newly released GBA Plus tools, provided by WAGE, to enable a more consistent and thorough application of GBA Plus across the Agency, including the assessment of funding applications and provision of training to all staff. Additionally, FedDev Ontario will strengthen the presence of other government-wide initiatives including the 50-30 challenge and anti-racism assessment in Agency policies, programs and tools

The Agency will continue to strengthen its connections with the diverse populations engaged in business growth, innovation and entrepreneurship in southern Ontario.

FedDev Ontario will also consider new approaches to further increase participation of underrepresented groups in the Agency's programming through its participation in a pilot project being led by the Government of Canada's Anti-racism Secretariat to develop an anti-racism framework to be used by all federal departments and agencies.

Highlights of GBA Plus Results Reporting Capacity by Program

  • Business Scale-up and Productivity
  • Regional Innovation Ecosystem
  • Community Economic Development and Diversification

FedDev Ontario's programming collects data that enables the Agency to monitor and report on program impacts by gender and diversity.

In 2023–24, FedDev Ontario will continue to leverage its funding application forms which include a voluntary self-identification section for underrepresented groups (including Indigenous peoples, Black people and other racialized groups, persons with disabilities, newcomers to Canada, women, members of official language minority communities, youth and 2SLGBTQI+ individuals). The Agency's application forms also ask clients to identify whether their organization will influence federal inclusive growth priorities among these groups. These self-identification sections will continue to support FedDev Ontario in collecting inclusive data, which enables the Agency to identify any existing gaps in program reach and in prioritizing projects that are led or majority led by underrepresented groups.

Additionally, in 2023–24, the Agency will continue to advance efforts to establish more robust GBA Plus practices including anti-racism tools at the project assessment phase and will continue to require eligible recipients to sign contribution agreements that incorporate diversity, equity and inclusion considerations.

Moreover, the Agency annually reports in the Departmental Results Report as part of the Departmental Results Framework on several GBA Plus-related indicators including percentage of SMEs that are majority-owned by women, Indigenous peoples, youth, Black people and other racialized groups, and persons with disabilities in southern Ontario. Additionally, indicators associated with the Economic Development Initiative and the Community Futures Program enable FedDev Ontario to measure the impacts of the Agency's funding on rural communities and official language minority communities, given the objectives of these programs. Through further analysis, the Agency can also determine the impacts of funding on intersecting populations.