Deep Tech Thrives Across the Maritimes Region

Atlantic Canada is establishing itself as a powerhouse in deep tech, leveraging its unique combination of affordability, collaboration, and innovation to attract attention from industry leaders, investors, and entrepreneurs. Once overshadowed by larger Canadian hubs like Toronto and Montréal, this region is proving it can hold its own, particularly in hardware innovation and research-intensive fields.

The transformation of Atlantic Canada’s tech ecosystem has been championed by figures like Iain Klugman, former CEO of Communitech and Advisory Board Member at the Nova Scotia Health Innovation Hub. Klugman’s focus on Atlantic Canada has been driven by the region’s determination to address pressing global challenges, from healthcare reform to combating climate change. He sees the area’s urgency and drive as key factors that differentiate it, noting that this energy gets him “really excited.” This enthusiasm is shared by Talis Apud-Martinez, Associate Director of the Emera ideaHUB at Dalhousie University, who sees Atlantic Canada as an increasingly attractive destination for deep tech innovation. Apud-Martinez emphasizes that the region offers significant opportunities for investors and founders, as its unique strengths in hardware development are beginning to gain national and international recognition.

One of Atlantic Canada’s standout advantages is its affordability, which allows startups to keep costs low while targeting global markets. This balance of affordability and ambition has earned the region a spot in Startup Genome’s global top 15 ecosystems for cost efficiency. Several factors contribute to this affordability, including competitive talent costs, accessible commercial real estate, and business-friendly policies from regional governments. Programs such as Nova Scotia’s tax credits for research and development expenditures, which cover up to 50% of eligible costs, significantly reduce the financial burden on startups working on hardware and research-intensive projects. Entrepreneurs like Jennifer Wagner, former president of CarbonCure Technologies, have credited these government funding programs as crucial to their early success, saying that without such support, “there would be no CarbonCure.”

Beyond tax credits, Atlantic Canada benefits from a robust pool of non-dilutive funding through organizations like the Atlantic Canada Opportunities Agency (ACOA) and NRC-IRAP. These programs enable startups to finance their development without giving up equity, a critical advantage for companies looking to scale while maintaining control over their operations. Halifax, the region’s largest city, has emerged as a particularly attractive hub, recognized as the second-most affordable location for operating life sciences research centres in North America and a leader in affordable ocean tech.

The region’s collaborative ecosystem further sets it apart, offering deep tech startups an ideal environment to pilot and validate their technologies. Hardware startups, unlike software companies, rely heavily on real-world testing and customer feedback to refine their products, a process that can be complex and resource-intensive. Atlantic Canada’s supportive community and infrastructure make it easier for startups to overcome these challenges. Healthtech company Myomar Molecular, for example, piloted its muscle health diagnostic tool with Nova Scotia’s population before its official launch. Similarly, Dartmouth-based DeNova tested its sustainable fish feed, developed from greenhouse gases, at the Center for Aquaculture Technology in Prince Edward Island. Halifax-based Planetary Technologies partnered with Dalhousie University to conduct groundbreaking trials of its ocean acidification reduction technology.

The Nova Scotia Health Innovation Hub has been particularly instrumental in fostering healthcare innovation by connecting researchers, clinicians, and startups. This organization enables companies to test and implement new healthcare ideas directly within public health systems, driving advancements that Klugman described as “leading the country.” Other sectors, such as ocean technology, have also flourished in the region thanks to its close ties to the maritime industry and support from entities like Canada’s Ocean Supercluster.

Atlantic Canada’s culture of collaboration further accelerates innovation. The smaller geographic footprint and tight-knit community make it easier for startups, researchers, and investors to form meaningful partnerships across sectors. Shelley King, founding CEO of Natural Products Canada, noted that this interconnectedness allows for unique collaborations that might not occur in larger ecosystems. She observed that companies in different industries often work together, benefiting from the region’s emphasis on shared success.

Startups in Atlantic Canada also have access to a growing support network, including organizations such as Lab2Market, Propel, and Startup Atlantic. These entities, along with opportunities provided by Invest Nova Scotia, offer resources, mentorship, and connections that are critical for deep tech companies navigating the challenges of hardware innovation. Atlantic Canada’s combination of affordability, collaboration, and support positions it as a rising star in the global tech landscape, with the potential to drive significant advancements in deep tech and beyond.