The median founding year of Canada's 20 largest publicly traded companies is 1919.Paige Taylor White/The Canadian Press
A look at Canada’s 20 largest publicly traded companies reveals an uncomfortable truth: Since the fall of Nortel and the decline of BlackBerry (formerly RIM) BB-T, the country has struggled to produce a globally dominant high-tech enterprise. Aside from a few exceptions such as Shopify SHOP-T, the upper ranks of Canadian capitalism remain firmly rooted in traditional sectors.
The median founding year of these top 20 companies is 1919, with only four founded in the past 50 years. Most operate in finance or oil and gas, underscoring Canada’s persistent reliance on legacy industries. By contrast, the top 20 companies in the U.S. have a median founding year of 1976.
Defenders of the status quo may argue that finance and energy offer stability. And there’s nothing inherently wrong with having large, successful firms in those sectors. However, the absence of innovative industries at the top is troubling. It signals stalled progress, limited wealth mobility and widening generational divides.
Long-established firms reward early capital – typically held by older generations – exacerbating wealth gaps. For younger Canadians facing unaffordable housing and fewer economic prospects, this entrenched corporate structure makes progress even harder.
Unlike high-growth tech firms that create new markets and services, legacy companies often operate in saturated domestic markets. Meanwhile, Canadians increasingly rely on technology developed abroad – particularly in the U.S.
This isn’t just about economic diversification. It’s about seizing future potential. A thriving tech sector could build exportable services, generate jobs and fuel global competitiveness. Instead, investment continues to flow into sectors with limited upside – or out of the country altogether.
Canada’s corporate landscape reflects the past more than the future. Without a deliberate push to foster the next generation of global companies, this country risks falling further behind in the race for innovation.
Opinion: The Big Six banks are to blame for the lifeless Toronto Stock Exchange
While solving this challenge is complex and requires a broad, strategic approach, three key changes could help spark a more dynamic start-up ecosystem.
First, reform capital-gains taxation to reward risk-taking. Start-up founders and early investors should not face the same tax treatment as those investing in legacy firms or real estate.
Second, shift the cultural narrative to value bold, calculated risk over excessive caution. Excessive stability may offer short-term comfort, but it can also signal stagnation.
Third, address the country’s overheated real-estate market – through measures such as relaxing zoning laws – and by curbing speculative demand with more prudent monetary policy. As long as property continues to deliver outsized returns, capital will flow into housing instead of innovative ventures.
Canada has the talent and potential to lead the next wave of global innovation. But to get there, we must stop clinging to the past and start embracing risk and investing in the future.
Hanif Bayat, PhD, is the chief executive and founder of WOWA.ca, a Canadian personal finance platform.