Thank you, Mr. Chair, and thank you to the committee for the opportunity to participate in this study.
The Entertainment Software Association of Canada represents a number of leading video game companies with operations in this country, from multinational publishers and console makers to local distributors and Canadian-owned independent studios. Canada's video game industry is one of the most dynamic and prolific in the world. During the period of 2013 to 2015, the industry grew by 24% and now contributes over $3 billion to Canada's GDP.
The video game industry is the fastest-growing segment of the entertainment industry globally. Here in Canada, approximately 475 studios from coast to coast directly employ over 20,000 full-time people in what many consider to be a maturing sector in Canada's burgeoning digital economy.
There's no debate: the video game industry is a strategic sector for economic development. Seven provinces have already recognized this fact and have introduced targeted tax incentives to attract and retain the industry in their jurisdictions. In fact, this model is now employed by many other countries and states worldwide in hopes of attracting and growing their own video game industries.
As our industry has matured in Canada, we have developed well-functioning ecosystems with fully integrated value chains for training, creative conception, development, quality testing, marketing, and sales and distribution of world-class entertainment software products.
We may not instinctively think of the video game industry as part of the manufacturing sector, but in a lot of ways it is very closely linked. From the collaborative nature of this sector with other creative industries, to the R and D being undertaken and the highly skilled workers required to innovate and excel, Canada has discovered the potential that digital manufacturing industries like ours can have for the economy. In fact, many of the technologies developed by the video game industry are now employed in many unrelated sectors. Technologies include 3-D animation and modelling in the defence industry, virtual reality in medical training, and motion sensing technology in law enforcement.
To maintain our success, we require policies, laws, and programs that help us grow in scale to remain competitive, protect our core assets—our intellectual property—and promote our successes.
I will start with the first point: help us grow in scale to remain competitive.
Some of the larger studios in Canada, employing several thousand workers in the cases of Ubisoft and Electronic Arts, are developing creative video game franchises that are exported throughout the world. Games such as NHL and FIFA, and franchises like Assassin's Creed, are now household names globally, even if few realize that they're actually made here in Canada. In addition, nearly 200 smaller studios in Canada are developing smaller games that are finding huge success on your phone, games that you likely play on the bus or the subway on your way to work.
While Canada remains a tiny market for domestic video game sales, we are a giant exporter, with 90% of the products developed here being exported and distributed all over the world, through physical retail outlets and, increasingly, digital online platforms. Despite our success, we continue to face challenges that are similar to those of other manufacturing sectors in Canada.
The most prevalent and concerning is the lack of timely access to skilled labour from abroad. Highly specialized talent and true innovators are hard to find in Canada and, indeed, in most other countries, yet those workers with specialized expertise are critical to our industry's ability to make great games, create new innovative technologies, and also remain competitive in an increasingly crowded marketplace.
Research conducted in 2015 by consulting firm Nordicity estimated that nearly 1,400 jobs in just the intermediate and senior categories needed to be filled in the video game industry between 2015 and 2017 to meet the rapid growth of the industry and increasing demand for our products. Canada must ensure that the environment for developing digital products remains competitive. Talent is our natural resource. As all digital industries continue to grow in this country, our natural resource is becoming more difficult to obtain.
We're pleased to see that the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons With Disabilities made positive recommendations about the need to reform the temporary foreign worker program. Similarly, we are encouraged that the Minister of Innovation, Science and Economic Development has marshalled cross-departmental resources to address the issue of skills as part of Canada's innovation strategy.
That said, we encourage the committee to consider recommendations that encourage the government to implement digital skills training as early as kindergarten and throughout the school curriculum, similar to the United Kingdom, which aspires to lead the world in innovation into the future.
The second point is the protection of our most valuable assets, our intellectual property.
Intellectual property has long been recognized as a core currency in the digital economy. Intellectual property is also a key component of what makes manufacturing companies generally successful, and it gives them a competitive edge. Intellectual property protects our innovation and gives our creators, companies, and products commercial viability.
Strong intellectual property laws attract foreign investment and can fuel job growth in the digital industries. Legislated IP protections and meaningful investment in the practical enforcement of these laws must be strong and robust if Canada expects to lead in the economy of the future. Our industry is rapidly evolving away from products that are sold as packaged goods toward one where games are digitally downloaded. We encourage the government to engage more regularly with industry stakeholders and enforcement officials to stay up to date on our challenging IP environment.
In addition, we encourage the government to commit to Canadian innovators that you will not only help to incent innovation but will also protect commercial viability through strong enforcement frameworks and partnerships. Strong protections and enforcement will go a long way in protecting the work and the jobs of the thousands of people in this country who develop world-leading and innovative products.
Finally, our last point: promote Canadian innovation. We encourage the committee to consider programs that help raise awareness of Canada's manufacturing successes, whether in the digital economy or otherwise.
Many Canadians are unaware of the incredible accomplishments of our sector. Celebrating innovation raises awareness of the work being done in Canada domestically and internationally. Initiatives offered through the trade commissioner service, such as trade missions and export assistance, are crucial components in helping small Canadian video game companies grow into global players. We believe that Canada is an exceptional place to innovate and manufacture products that the rest of the world can enjoy and love, and we hope that through greater awareness of Canadian innovation we will achieve an even greater level of domestic and international success.
In closing, we encourage this committee to support efforts that help us grow in scale to remain competitive and meet market demands, that protect our core intellectual property, and that promote our success.
Thank you for the opportunity to appear and speak before you today.