Canada most cost-competitive nation for digital industries: KPMG study

Canada is the most cost-competitive country to run a business in the digital sector, topping the UK, The Netherlands and France in KPMG’s Competitive Alternatives 2012 study.

The report compares business costs and competitiveness in 14 countries.

Canada is the mostcost-competitive country for digital businesses like video gamedevelopment, a new KPMG study says. Here’s the Vancouver office ofElectronic Arts. 

Canada enjoys a whopping 14.9 per cent cost competiveness advantageover the U.S. in the digital industries sector, far ahead of secondplace Britain where the advantage is just eight per cent better thanthe U.S. Much of the Canadian advantage in this sector is due to thefact that “for digital operations, Canada (offers)…the lowest effectivecorporate income tax rates,” according to the report.

The digital industries included inthis category of the report aredigital entertainment, software development, software design and videogame development.
In terms of R&D, Canadian companiesalso have an edge. Canadais the second most cost competitive nation after The Netherlands forR&D activities, with a 10.7 per cent cost advantage over theU.S. R&D sector.

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Jim Love, Chief Content Officer, IT World Canada

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