•Blogue, Hardtech, Meetup
Cross-Border Hardware Success: Navigating Canadian and U.S. Regulations
Insights from Hardtech Innovators Meetup on successful U.S. market entry for Canadian hardware companies
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This article summarizes insights from the Hardtech Innovators Meetup held in Montreal in November 2024, featuring Sam Rudolph (ecobee), Louis St-Pierre (Ora Medical), JB Congy (EY), and Alexia Magneron (Osler).
Three Critical Success Factors
- Understanding contract-centric U.S. business relationships
- Early integration of compliance into product development
- Strategic market entry choices
The U.S. Business Playbook
- Contract importance: "They're not just legal documents—they're your first line of communication" (Magneron)
- Tax complexity: Companies face obligations in up to 45 states with varying trigger points
- Revenue thresholds: Tax compliance obligations activate at approximately $100,000 annually
Market Entry Strategies
- dcbel's approach: Selected California as entry point to validate their model before nationwide expansion
- Ora Medical's approach: Focused on regional partnerships and distribution networks
Resources
- Trade Commissioner Service (TCS)
- Investissement Québec International
- FDA's Division of Industry and Consumer Education (DICE)
- Consumer Technology Association (CTA)