Drawn by favorable government policies, a deep talent pool backed by world-class educational institutions and proximity to Silicon Valley, Vancouver has lured some of the world’s largest technology companies.
Why Big Tech Picked Vancouver
Each of those draws does a different job. Government policy, from tax credits to immigration rules, lowers the cost and risk of setting up. Local universities and colleges supply a steady flow of graduates. And being a short flight from Seattle and the Bay Area means a Vancouver office can work closely with a head office without everyone relocating.
For a global company, that mix makes Vancouver an easy place to add engineers. For the local startup scene, the arrival of those offices matters for a less obvious reason: it changes who lives and works in the city.
How the Ripple Effect Works
The arrival of these tech heavyweights has unleashed a ripple effect boosting startups in Vancouver and the rest of B.C. as expertise and capital flow from these newcomers, according to Ernst & Young’s B.C. technology sector leader Richard Mockett.
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Large companies bring in experienced people and train new ones. Some of those employees eventually leave to start companies of their own, carrying what they learned about building and selling products at scale. Others stay but invest, mentor or sit on advisory boards. Over time, that creates a local pool of know-how and money that a young startup scene usually lacks.
Successful entrepreneurs are regularly teaming up to provide the next generation of entrepreneurs with guidance and funding.
“What that does is creates a sort of cluster effect,” says Mockett. “There’s a lot of entrepreneurs spending a lot of time, capital, and experience in developing the next generation of entrepreneurs… It’s just phenomenal to see the energy, the passion, the whole community is bringing to B.C.”
What Happened Next
The heavyweights kept coming, and the ones already there grew. In December 2017, Microsoft opened a 142,000-square-foot office and development hub across the top two floors of Pacific Centre’s Nordstrom building in downtown Vancouver, with room for up to 750 employees. In March 2021, the company said it was adding more than 500 jobs in the city, which would grow its Vancouver presence to 1,700 employees.
Amazon made an even bigger move. On April 30, 2018, with Prime Minister Justin Trudeau in attendance, it announced plans to expand its Vancouver tech hub and create 3,000 more jobs in fields including e-commerce technology, cloud computing and machine learning. The event was held at the site of a planned 416,000-square-foot development centre. At the time, Amazon said it already employed more than 6,000 people across Canada.
The wider sector grew alongside them. By 2024, B.C.’s tech sector comprised more than 11,000 companies and employed over 200,000 people, according to the federal announcement that brought the Web Summit conference to Vancouver from 2025.
The Other Side of the Ripple
Big employers don’t only help startups. They also compete with them for the same engineers, and they can usually pay more. A founder trying to hire a senior developer in a city full of large tech offices is bidding against companies with far deeper pockets.
That’s why the mentoring and reinvestment Mockett described matter so much. When experienced people choose to spend their time and money on new companies, some of the talent and capital that big firms draw in finds its way back into the startup scene, rather than staying locked inside a handful of large offices.
What It Means for Founders
If you’re building in a city with a growing big-tech presence, treat it as a resource. Former employees of large companies can be early hires, advisers and angel investors, and they often know exactly how a big customer buys software.
At the same time, plan for the hiring pressure. Offer what large companies find hard to match, such as ownership, a broad role and a direct line to decisions. The cluster effect works best when founders tap into it on purpose, rather than simply hoping some of it flows their way.
Frequently Asked Questions
Why have large tech companies been drawn to Vancouver?
According to the article, favorable government policies, a deep talent pool backed by world-class educational institutions and proximity to Silicon Valley have lured some of the world's largest technology companies to Vancouver.
What is the cluster effect Richard Mockett describes?
Richard Mockett, Ernst & Young's B.C. technology sector leader, used the term for what happens when experienced entrepreneurs invest time, capital and experience in the next generation, building energy across the B.C. tech community.
How has Microsoft grown in Vancouver?
In December 2017, Microsoft opened a 142,000-square-foot hub in downtown Vancouver with room for up to 750 employees. In 2021, it said new hiring would grow its Vancouver presence to 1,700 employees.
What did Amazon announce for Vancouver in 2018?
On April 30, 2018, Amazon announced plans to expand its Vancouver tech hub and create 3,000 more jobs in areas including e-commerce technology, cloud computing and machine learning, at a planned 416,000-square-foot development centre.
Do big tech companies make it harder for startups to hire?
They can, because large employers compete for the same engineers and can usually pay more. Mentoring and reinvestment by experienced people help send some of that talent and capital back into the startup scene.