We don't want no Silicon Valley – the Canadian city fighting for a new kind of tech hub

Toronto is being upstaged in the tech world by a sprightly little neighbour upstream: Kitchener-Waterloo. Image: Benson Kua

Last year, the mayors of Toronto and Kitchener, Ontario, shook hands over plans to develop new transit infrastructure connecting the big city and the little town.

One of many reasons was to facilitate the movement of high-skill, enterprising workers expected to cluster in the region over the next few years. The province has high hopes for the up-and-coming Innovation Corridor, calling it the next Silicon Valley, or rather Silicon Valley North.

But it’s not big-city Toronto at the heart of the region, but Kitchener-Waterloo (KW), Canada’s start-up city and the birthplace of smartphones.

Ever heard of Research in Motion, now renamed BlackBerry? It was homegrown by Jim Balsillie, a business grad, and Mike Lazaridis, an engineering student at the University of Waterloo.


This is important: KW’s success as a hi-tech hub is largely attributed to Waterloo’s international co-op program. Founded in the late 1950s, it built ties between the university and industry, transitioning the region from traditional textiles to technology manufacturing in the 1970s.

Professional scientific, tech and educational services were gradually booming, and academics were researching Canada’s Tech Triangle by the early 1990s. Fast-forward to 2017, and KW unveiled a new economic development strategy (Make it Kitchener), wooing tech leviathans – Google opened its regional headquarters in downtown Kitchener – and revamping its city core to attract and retain talent. It’s working.

BlackBerry is long gone, but against all expectations, the entrepreneurial spirit remains in KW. Lazaridis continues to invest in quantum computing, nanotech and engineering at Waterloo, and is the force behind Perimeter, a research institute devoted to theoretical physics.

Balsillie directs his efforts towards international affairs, and founded the Balsillie School of International Affairs and the Centre for International Governance Innovation with a special focus in international law. With the support of the provincial government, the international law research program hosts legal clinics, offering advice on intellectual property to start-ups in the region.

The revamped Walper Hotel in downtown Kitchener-Waterloo. Image: Filipa Pajevic

Balsillie is also behind Communitech, an incubator devoted to building and supporting the regional tech community. Former BlackBerry employees kick-started their own businesses, or were snatched up by other tech companies in KW. The city of Kitchener was adamant on keeping people around, offering space and a metaphorical shoulder to cry on until they could stand on their own feet again.

That’s what distinguishes KW from other tech hubs: it’s a community, a family that has your back no matter what. And they’re happy with that – they really don’t want to be another Silicon Valley Why? Because they see how detrimental a hi-tech super-cluster, like Silicon Valley, can be.

Sure, techies are stereotypically inward-looking, and millennials are more often than not considered – perhaps erroneously – selfish and apathetic. But these kids are more concerned with making KW proud than profitable. Even academics recognize that it is the community networks more than business networks that make for an interesting business climate in the region.

Vidyard’s CEO, a millennial, who grew up in Kitchener and has benefited from its community services, feels that the hip and upbeat internal culture of the tech community ought to extend outward to include other sectors and people. He wants KW to improve while avoiding the negative effects of gentrification.   

It may be a tech hub but it still looks incredibly dull from above. Image: Tom1973 via Wikimedia Commons

Likeminded individuals are working closely with local charities, getting involved politically and discussing affordable housing, re-defining volunteerism by offering their skills to the community. Furthermore, they talk to newcomers about homelessness and mental health issues, and the need to address both. When a business comes knocking at the door, the answer is not “what can I do for you”, but “what can you do for me?”

Still, inequality is hard to fix. Kitchener is not problem-free. Developers are building condos that are unlikely to cater to polarizing incomes, and the projected influx of people (especially given the change in political climate south of the border) will rock the boat some.

If all goes to plan, the tight-knit, locals-for-locals community of Kitchener-Waterloo may be the first of its kind – a tech hub that develops its brain without losing its heart.

Filipa Pajević researches urban planning at McGill University, Montréal, and is on Twitter as @filipouris

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“Without rent control we can’t hope to solve London’s housing crisis”

You BET! Oh GOD. Image: Getty.

Today, the mayor of London called for new powers to introduce rent controls in London. With ever increasing rents swallowing more of people’s income and driving poverty, the free market has clearly failed to provide affordable homes for Londoners. 

Created in 1988, the modern private rented sector was designed primarily to attract investment, with the balance of power weighted almost entirely in landlords’ favour. As social housing stock has been eroded, with more than 1 million fewer social rented homes today compared to 1980, and as the financialisation of homes has driven up house prices, more and more people are getting trapped private renting. In 1990 just 11 per cent of households in London rented privately, but by 2017 this figure had grown to 27 per cent; it is also home to an increasing number of families and older people. 

When I first moved to London, I spent years spending well over 50 per cent of my income on rent. Even without any dependent to support, after essentials my disposable income was vanishingly small. London has the highest rent to income ratio of any region, and the highest proportion of households spending over a third of their income on rent. High rents limit people’s lives, and in London this has become a major driver of poverty and inequality. In the three years leading up to 2015-16, 960,000 private renters were living in poverty, and over half of children growing up in private rented housing are living in poverty.

So carefully designed rent controls therefore have the potential to reduce poverty and may also contribute over time to the reduction of the housing benefit bill (although any housing bill reductions have to come after an expansion of the system, which has been subject to brutal cuts over the last decade). Rent controls may also support London’s employers, two-thirds of whom are struggling to recruit entry-level staff because of the shortage of affordable homes. 

It’s obvious that London rents are far too high, and now an increasing number of voices are calling for rent controls as part of the solution: 68 per cent of Londoners are in favour, and a growing renters’ movement has emerged. Groups like the London Renters Union have already secured a massive victory in the outlawing of section 21 ‘no fault’ evictions. But without rent control, landlords can still unfairly get rid of tenants by jacking up rents.


At the New Economics Foundation we’ve been working with the Mayor of London and the Greater London Authority to research what kind of rent control would work in London. Rent controls are often polarising in the UK but are commonplace elsewhere. New York controls rents on many properties, and Berlin has just introduced a five year “rental lid”, with the mayor citing a desire to not become “like London” as a motivation for the policy. 

A rent control that helps to solve London’s housing crisis would need to meet several criteria. Since rents have risen three times faster than average wages since 2010, rent control should initially brings rents down. Our research found that a 1 per cent reduction in rents for four years could lead to 20 per cent cheaper rents compared to where they would be otherwise. London also needs a rent control both within and between tenancies because otherwise landlords can just reset rents when tenancies end.

Without rent control we can’t hope to solve London’s housing crisis – but it’s not without risk. Decreases in landlord profits could encourage current landlords to exit the sector and discourage new ones from entering it. And a sharp reduction in the supply of privately rented homes would severely reduce housing options for Londoners, whilst reducing incentives for landlords to maintain and improve their properties.

Rent controls should be introduced in a stepped way to minimise risks for tenants. And we need more information on landlords, rents, and their business models in order to design a rent control which avoids unintended consequences.

Rent controls are also not a silver bullet. They need to be part of a package of solutions to London’s housing affordability crisis, including a large scale increase in social housebuilding and an improvement in housing benefit. However, private renting will be part of London’s housing system for some time to come, and the scale of the affordability crisis in London means that the question of rent controls is no longer “if”, but increasingly “how”. 

Joe Beswick is head of housing & land at the New Economics Foundation.