Innovation ecosystems as drivers of economic diversification

Pierre-Olivier Bouchard

September 8, 2025

Technology and Innovation

In a global context marked by economic, technological and environmental transitions, many regions are seeking to reinvent their growth model. Innovation is thus becoming a key lever for diversifying economies, attracting talent and strengthening resilience in the face of global shocks. Quebec and the United Arab Emirates, although very different in terms of history, economic structure and geography, illustrate this shared desire to invest in innovation ecosystems as drivers of diversification.

In Montreal, clusters such as Quartier de l'innovation, Propulsion Québec and AX.C form a coherent framework to stimulate tomorrow's strategic sectors, from clean technologies to artificial intelligence. In the Emirates, Dubai and Abu Dhabi are deploying ambitious platforms such as Dubai Silicon Oasis, Hub71 and Masdar City to accelerate their transition to a knowledge-based economy. These initiatives reflect a strategic vision: to make innovation a pillar of sustainable and inclusive development.

1 - Québec: technology hubs for a greener, more competitive economy

1.1 - Innovation district: a catalyst for urban experimentation

Located between Griffintown and Old Montreal, the Quartier de l'innovation (QiMtl) has been, for almost a decade, a dynamic urban ecosystem bringing together universities, companies, startups, citizens and public institutions. This open-air laboratory has enabled the testing of solutions in mobility, energy, health and digital technologies, while fostering collaboration between academia and industry.

Between 2013 and 2022, the QI supported hundreds of innovative projects, attracted over 25,000 participants to its events, generated close to a million dollars in contracts and contributed to Montreal's technological attractiveness. Despite its notable impact, the organization ended its activities in July 2022, due in part to the pandemic and the reorganization of Quebec's innovation ecosystem (Frappier, 2022).

1.2 - Propulsion Québec: driving transport electrification

Propulsion Québec is the innovation hub for the battery and electric transport sector in Quebec. Its mission is to structure the entire value chain, from lithium extraction to the manufacture and marketing of electric vehicles, by mobilizing local industrial and scientific expertise. The cluster supports innovative companies such as Lion Électrique, AddÉnergie and Effenco, which develop sustainable mobility solutions tailored to the North American and European markets.

This integrated approach helps reduce greenhouse gas emissions while stimulating a strategic industrial sector. In 2023, more than 10,000 people were working in the electric transportation sector in Quebec, a figure that is rising steadily, with annual growth estimated at 8% (Ministère de l'Économie, de l'Innovation et de l'Énergie, 2024).

1.3 - AX.C: a crossroads for applied sciences and critical technologies

Scheduled to open its doors in the spring of 2025, Ax.c aims to become a major convergence point for technological entrepreneurship in Quebec. Spearheaded by ÉTS's Centech, with the support of the Quebec government, the City of Montreal and private partners such as Google, Bell and Desjardins, the project aims to bring together startups, investors, researchers and major corporations around a shared vision of innovation.

Located in the heart of downtown Montreal, this multifunctional space will offer collaborative workplaces, a prototyping workshop, event spaces and multiple networking opportunities. Ax.c stands out for its values of mutual aid, ingenuity and openness, and intends to become a springboard for bold projects driven by Quebec's entrepreneurial community.

Born of a need identified as early as 2018, this project has come to fruition thanks to $38.5 million in structuring funding and the leadership of key figures in the ecosystem. Aligned with the Quebec Research and Innovation Strategy (SQRI2), Ax.c will play a strategic role in the commercialization of technologies and the sustainable transformation of the Quebec economy (Ax.c, 2024).

2 - Dubai and Abu Dhabi: innovation and ambition at the heart of post-oil strategy

2.1 - Dubai Silicon Oasis: a forward-looking digital city

Created in 2004, Dubai Silicon Oasis (DSO) is a 7.2 km² free zone dedicated to high-tech industries. In addition to hosting headquarters, laboratories and coworking spaces, DSO offers a flexible regulatory environment, a one-stop administrative shop and attractive tax incentives. The Dubai Technology Entrepreneur Campus (Dtec), located at the heart of the DSO, is one of the largest technology incubators in the MENA region, hosting over 1,000 startups from 75 countries (Dubai Silicon Oasis Authority, 2024).

DSO also plays a key role in education and skills development through partnerships with institutions such as Rochester Institute of Technology (RIT) - Dubai Campus.

2.2 - Hub71 in Abu Dhabi and the network effect

Hub71, based in the Abu Dhabi Global Market (ADGM) business district, is a national innovation platform aimed at connecting entrepreneurs, researchers and investors. It is based on a comprehensive support model, including subsidized housing, mentoring, venture capital and connections with companies such as Microsoft and SoftBank (Hub71, 2024).

The complementary nature of Dubai and Abu Dhabi allows for sector specialization: Dubai is more attractive to fintechs and expansion-stage companies, while Abu Dhabi targets basic research, biotech and deep techs. Together, they create an innovation corridor within the UAE.

2.3 - Masdar City and sustainable innovation

In addition to DSO and Hub71, Masdar City is an emblematic example of a smart city designed to embody the energy transition. Located near Abu Dhabi airport, it integrates passive building, renewable energy and soft mobility technologies. It is home to the Masdar Institute of Science and Technology, as well as companies specializing in clean energy, circularity and energy efficiency.

These innovative zones contribute to the economic diversification of the Emirates, while projecting an image of modernity and sustainability on the international stage.

3 - Comparing impacts: diversification, employment and outreach

3.1 - Creating skilled jobs and upgrading skills

In both regions, innovation ecosystems are creating jobs in tomorrow's strategic sectors. In Montreal, initiatives such as Montréal International, Startup Montréal and IVADO support the development of talent in artificial intelligence, cybersecurity, green engineering and data science. These jobs, which are generally well-paid, attract young graduates and help reduce the brain drain (Montréal International, 2024).

In the Emirates, the attractiveness of the technology sector is based on an advantageous tax environment, state-of-the-art infrastructure and a high quality of life. At GITEX 2024, the Emirates' Minister of the Economy stated that the country now attracts more artificial intelligence talent than any other country except the USA, reflecting the national strategy to position the Emirates as a global innovation hub (Gulf News, 2024).

3.2 - Economic diversification and international influence

Québec is diversifying its business sectors by focusing on technological niches linked to its natural resources, notably hydroelectricity, critical minerals and engineered wood. The Plan québécois pour la valorisation des minéraux critiques et stratégiques, published in 2020, bears witness to this desire to structure an innovative and sustainable industry around strategic materials for the energy transition (Ministère de l'Énergie et des Ressources naturelles, 2020).

For its part, the United Arab Emirates is asserting itself as a regional platform for innovation, services and international trade. Their long-term economic strategy emphasizes digital transformation, technological entrepreneurship and sustainability as drivers of future growth (UAE Ministry of Economy, n.d.).

Innovation is also becoming a tool of economic diplomacy. Events such as GITEX in Dubai, one of the world's largest technology trade shows, and Movin'On in Montreal, dedicated to sustainable mobility, enable both cities to reinforce their positioning as technological showcases on the world stage.

4 - Conclusion: two models, one ambition

Although their economic contexts are very different, Montreal and the major cities of the Emirates share a common ambition: to use innovation as a vector for structural transformation. Montreal relies on an inclusive approach, rooted in collaboration between universities, SMEs, startups and governments. Dubai and Abu Dhabi are adopting a proactive, capital-intensive strategy to rapidly structure clusters of excellence.

In both cases, these ecosystems play a key role in the creation of skilled jobs, economic resilience and regional attractiveness. They show that innovation is not limited to a technological rationale, but is a strategic lever for economic, social and sustainable development.

REFERENCES:

Frappier, M.-P. (2022, June 3). Quartier de l'Innovation de Montréal: l'aventure se fin. Les Affaires. https://www.lesaffaires.com/dossier/transformation-numerique-le-grand-rattrapage/quartier-de-l-innovation-de-montreal-l-aventure-se-termine/636797

Ministère de l'Économie, de l'Innovation et de l'Énergie. (2024). Portrait sectoriel - Transport électrique. Government of Quebec. https://www.quebec.ca/entreprises-et-travailleurs-autonomes/transport-electrique

Ax.c. (2024). Espace Ax.c - The gathering place for technological innovation in Montreal. https://espaceaxc.com/

Dubai Silicon Oasis Authority (2024). Dubai Technology Entrepreneur Campus (Dtec). https://www.dsoa.ae/

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Gulf News. (2024, October 16). Gitex 2024: UAE attracts the most AI talent after the US, says Minister of Economy. https://gulfnews.com/business/markets/gitex-2024-uae-attracts-the-most-ai-talent-after-the-us-says-minister-of-economy-1.1728908393986

GITEX. (2023). GITEX GLOBAL - The world's largest tech event. https://www.gitex.com/

Ministry of Energy and Natural Resources. (2020). Plan québécois pour la valorisation des minéraux critiques et stratégiques. Government of Quebec. https://cdn-contenu.quebec.ca/cdn-contenu/adm/min/energie-ressources-naturelles/publications-adm/plan-strategique/PL_valorisation_mineraux_critiques_strategiques.pdf

Movin'On (2024). The world summit on sustainable mobility. https://www.movinonconnect.com/qui-sommes-nous/  

UAE Ministry of Economy (n.d.). Future Economy. https://www.moec.gov.ae/en/future-economy