Newfoundland Tech Sector Pushes for Regulatory Overhaul to Stem Talent Loss

Newfoundland and Labrador has established itself as a budding tech hub, boasting a high per capita rate of unicorn companies and a notable 2020 acquisition of financial crime management firm Verafin by Nasdaq, as BetaKit first reported. While scale-ups such as CoLab Software and Spellbook have secured backing from Silicon Valley firms Spider Capital and Khosla Ventures, local leaders say regulatory hurdles remain.

Andrea King, the CEO of the government-funded nonprofit TechNL, has identified three primary policy priorities to drive growth. First, King is calling for a reduction in red tape, specifically targeting the elimination of duplicate paperwork for provincial and federal grants and a faster review process. Second, she is advocating for procurement reform to ensure local companies can sell to their own provincial government. Finally, King suggested increasing the investment tax credit in the North Avalon region from 20 percent to 35 percent to match Nova Scotia's rate.

Premier Tony Wakeham, who has been in office for one year, expressed openness to these changes during a recent TechNL summit. Wakeham told BetaKit he is open to anything that improves business and creates opportunities, noting that putting more money in citizens' pockets eventually benefits government revenue. He also indicated that the province is developing an AI strategy in response to Canada's national roadmap released in June.

Attracting and retaining skilled workers remains a critical focal point. While CoLab chief strategy officer Taylor Young told BetaKit that talent retention has not been a major issue for his company, King emphasized the need to attract ambitious, educated workers to the province. Wakeham acknowledged the need for more work opportunities but cited challenges stemming from reduced federal immigration targets.