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 this organization.
Mandate and role
FedDev Ontario's core mandate is to strengthen southern Ontario's economic capacity for innovation, economic development and growth. To achieve this, the Agency will continue its strategic investments and collaborations 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. Ultimately, FedDev Ontario aims to promote a dynamic, inclusive and globally-competitive southern Ontario.
FedDev Ontario is a reliable, long-term and trusted partner to southern Ontario's dynamic businesses, organizations and communities. It is also a key platform to support the government's overall economic agenda in a manner that is tailored to the specific opportunities and challenges of Canadians in southern Ontario.
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 unlock opportunities for businesses and organizations in the innovation economy, and help to position the region as a leader in diversity and inclusion, alongside the shift to a green and sustainable economy.
In addition, FedDev Ontario plays an important role as a delivery agent for national federal programs. For example, the Community Futures Program supports rural communities as they develop and sustain their local economies and the Economic Development Initiative supports Francophone and bilingual organizations in official language minority communities (OLMCs). The Agency also delivers temporary national initiatives in southern Ontario that respond to government priorities. This includes the Tourism Growth Program (TGP), which contributes to the Federal Tourism Growth Strategy in its efforts to chart a course for long-term growth, investment and stability in Canada's tourism sector. The success with which the regional development agencies (RDAs) are able to deliver these programs demonstrates a continued 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 strong presence across southern Ontario. The Agency 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. In doing so, 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.
Additionally, the Agency works with southern Ontario firms and researchers to encourage and assist with participation in large Canadian defence procurements in support of the Industrial and Technological Benefits (ITB) Policy.
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 that will 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 mandate letter commitments, see the Minister's mandate letter.
Operating context
Southern Ontario is a key contributor to the Canadian economy. The region is home to 14.2 million people, representing over a third of Canada's growing and increasingly diverse population. Ontario generates approximately $1 trillion in Gross Domestic Product (GDP) and the region accounts for nearly 40 percent of Canada's GDP and 31% of Canada's domestic exports. The province also produces nearly half of all Canadian manufacturing exports.
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 100 incubators and accelerators and a highly educated labour force with 35 post-secondary education institutions, positions the region as a strong enabler of economic growth. Contributors to this economic success include the many aspiring entrepreneurs and venture capitalists that are instrumental to the economic growth of both the region and the nation. Southern Ontario is also home to an incredibly diverse population, attracting almost half of all newcomers to Canada.
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, including approximately 37 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, resulting in increased productivity, competitiveness and retention of the region's firms and talent.
Southern Ontario has been experiencing economic disruptions from international conflicts such as the Russian invasion of Ukraine, which resulted in a shock to supply chains and forced many companies across the country to adapt their business models. In addition, southern Ontario faces high inflation both as a result of pandemic-related supply chain issues and pent-up consumer demand following the relaxation of restrictions. High inflation has caused the Bank of Canada to increase its policy interest rate from 0.25 basis points in January 2022 to 5.00 basis points in July 2023 (where it has held constant for some time), curtailing consumer spending and business investment. The policy interest rate is expected to remain fluid as the overall inflation rate changes.
High costs due to inflation and elevated interest rates have uneven impacts across sectors, regions and groups. Industries that primarily support consumer discretionary goods and technology may face challenges during times of rising prices. These higher costs disproportionately impact the region's underrepresented groups including women, Indigenous Peoples, Black Canadians and racialized communities, youth, 2SLBGTQI+, OLMCs, and Persons with Disabilities. Macro trends that present both opportunities and challenges for the region, including increased remote work and untethering of clusters and talent, the shortening of supply chains, shifts to e-commerce and increased focus on the automation of jobs continue to impact southern Ontario's economy.
The challenges and opportunities may accelerate over the longer term. 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 the 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 for a green and inclusive economy.
Details on transfer payment programs
Transfer payment programs with total planned spending of $5 million or more
| 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:
|
| 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. |
| Type of transfer payment | 2023–24 forecast spending | 2024–25 planned spending | 2025–26 planned spending | 2026–27 planned spending |
|---|---|---|---|---|
| Total contributions | 13,289,110 | 13,289,110 | 13,289,110 | 11,285,992 |
| Total program | 13,289,110 | 13,289,110 | 13,289,110 | 11,285,992 |
Transfer payment programs with total planned spending of $5 million or more
| Start date |
October 18, 2018 |
|---|---|
| End date |
REGI – Ongoing Black Entrepreneurship Program – Ecosystem Fund (BEP) – ending March 31, 2025 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:
REGI also includes temporary funding streams:
Transfer payments will be repayable and non-repayable contributions. |
| Expected results |
|
| Fiscal year of last completed evaluation |
2023–24 |
| Decision following the results of last evaluation |
Pending |
| Fiscal year of next planned evaluation |
2028-29 |
| General targeted recipient groups |
For-profit businesses, including small- and medium-sized enterprises and start-ups, located in southern Ontario. 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. These 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. FedDev Ontario also works with federal partners on the Global Skills Strategy, helping high-growth firms scale up by facilitating access to global talent. |
| Type of transfer payment | 2023–24 forecast spending | 2024–25 planned spending | 2025–26 planned spending | 2026–27 planned spending |
|---|---|---|---|---|
| Total contributions | 305,766,788 | 137,020,636 | 141,835,832 | 143,632,054 |
| Total program | 305,766,788 | 137,020,636 | 141,835,832 | 143,632,054 |
Transfer payment programs with total planned spending of $5 million or more
| Start date |
April 1, 2014 |
|---|---|
| End date |
SOPP – Ongoing Economic Development Initiative (EDI) – Ongoing Tourism Growth Program (TGP) – ending March 31, 2026 |
| 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 |
|
| Expected results |
|
| 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 Growth Program: Businesses, not-for-profit organizations such as tourism associations, band councils or other Indigenous organizations and cooperatives, and other levels of government, including the municipal level. |
| 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. These include site visits and regular contact with the recipients regarding reporting and claims requirements to ensure timely progress and completion of projects. Agency representatives also engage with recipients throughout the project implementation period and identify opportunities for project milestone announcements and communications events. |
|
Type of transfer payment |
2023–24 forecast spending |
2024–25 planned spending |
2025–26 planned spending |
2026–27 planned spending |
| Total contributions | 100,168,654 | 39,710,613 | 28,126,830 | 13,324,746 |
| Total program | 100,168,654 | 39,710,613 | 28,126,830 | 13,324,746 |
Gender-based analysis (GBA) plus
Institutional GBA Plus Capacity
Throughout 2024–25, 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 appointed a designated Diversity, Equity and Inclusion (DEI) Advisor that will lead the Agency's work to achieve measurable outcomes under its DEI Action Plan.
The Agency has made progress in advancing institutional knowledge of GBA Plus. In 2024–25, FedDev Ontario will continue to seek opportunities to further enhance its 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 employees to participate in specialized training, such as the training offered by the Canada School of Public Service, that enhances the skills and competencies of employees. 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 in Agency policies, programs and tools, including the 50-30 Challenge and anti-racism assessment.
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 explore new approaches to further increase participation of underrepresented groups in the Agency's programming through its participation in a pilot project, led by the Government of Canada's Anti-racism Secretariat, to develop an anti-racism framework for all federal departments and agencies.
|
Funding for Businesses Funding for Organizations that Help Businesses Grown |
In 2024–25, FedDev Ontario will continue to leverage its funding application forms which include a voluntary self-identification section for underrepresented groups (including Indigenous peoples, Black Canadians and other racialized groups, persons with disabilities, newcomers to Canada, women, members of OLMCs, 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 in identifying any existing gaps in program reach and in prioritizing projects that are led or majority-led by underrepresented groups. Additionally, in 2024–25, 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. The Agency annually reports in the Departmental Results Report, as part of the Departmental Results Framework, on several GBA Plus-related indicators, including a percentage of SMEs in southern Ontario that are majority-owned by women, Indigenous peoples, youth, Black Canadians and other racialized groups, and persons with disabilities. 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 OLMCs. Through further analysis, the Agency will also assess the impacts of funding on intersecting populations. |
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