If you missed the acclaimed film BlackBerry in theatres, the story will be available as a three-part limited series on CBC and streaming on CBC Gem, beginning November 9, with additional scenes not seen in the theatrical cut. The adaptation traces the rise and rapid decline of Canada’s early‑21st‑century technology champion. Beyond its entertainment value, the series — and the book it’s based on — offers practical lessons for anyone interested in investing in technology startups or understanding how companies succeed and fail on the global stage. MoneySense spoke with Jacquie McNish, co‑author of Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry (Flatiron Books, 2015), about the takeaways investors should keep in mind.
1. Starting and scaling a global tech leader from Canada is hard
McNish points out a structural challenge: Canada tends to be a risk‑averse market dominated by large, established corporations across sectors like banking, telecommunications and real estate. That environment makes it difficult for locally founded technology firms to attract the scale of capital, commercial partnerships and media attention their U.S. counterparts often receive. BlackBerry, known initially as Research in Motion (RIM), only rose to national prominence after securing backing and distribution support from American investors and industry players, and after public endorsements from high‑profile figures. Until the broader funding and corporate ecosystem in Canada becomes more willing to shoulder risk, investors should be realistic about the comparative advantages American‑based competitors can enjoy.
2. First‑mover advantage is worth less than you’d think
BlackBerry is often credited with helping to define the modern smartphone category, but that achievement did not guarantee long‑term dominance. In the years before BlackBerry’s breakthrough, several companies experimented with combining mobile telephony and internet services; many of those efforts failed. McNish explains that BlackBerry’s early technical edge rested on innovations that conserved network bandwidth and optimized message delivery. However, when carriers shifted their business models to sell data and network capacity vastly increased, those specific advantages lost relevance. Competitors that prioritized a richer user experience — with multimedia, maps and an app ecosystem — could overtake a first mover whose core advantages depended on constraints that no longer existed.
3. Corporate partnerships are key
Partnerships with carriers and other large corporations were central to BlackBerry’s early success. The company’s first big commercial opportunity arrived when a major U.S. telephone carrier embraced its messaging device, giving it crucial distribution and credibility. For technology startups, forming strong commercial relationships can accelerate adoption, open revenue streams and provide operational scale. Conversely, taking those partnerships for granted, or failing to nurture them as the market evolves, can leave a company exposed. McNish notes that when Apple launched the iPhone in 2007, Apple secured lucrative network commitments and exclusive arrangements that helped it deliver the user experience customers wanted while ensuring carriers upgraded infrastructure to support new data demands.
4. Beware cognitive dissonance
When disruptive competition appears, management’s response matters. McNish describes a critical moment after Apple’s announcement when investors, customers and partners asked BlackBerry’s leaders whether they considered the threat serious. The company’s initial reaction — dismissing or minimizing the challenge — allowed problems to grow. For investors, cognitive dissonance manifests when market participants ignore mounting evidence that a business model or product is losing relevance. Good management acknowledges risks, communicates openly about them, and acts decisively to adapt. Failure to do so can erode trust across stakeholders and accelerate decline.
5. Governance matters
Early on, the complementary skills of BlackBerry’s co‑CEOs helped the company move quickly and innovate. Over time, however, governance shortcomings emerged. McNish highlights that by the period when larger competitors appeared, the executive team was dysfunctional and communication had broken down. A more active, independent and diverse board could have provided stronger oversight, asked tougher questions, and ensured risks were identified and addressed—whether around strategy, executive conduct or incentive structures. Investors should look closely at board composition and governance processes when evaluating tech companies, because strong governance can reduce the likelihood that leadership blind spots will go unchallenged.
Further reading on investing in Canada:
- What are growth stocks?
- Canada’s best dividend stocks for 2023
- Attention, Canadian investors—the “Magnificent Seven” stocks are dominating
- What are blue‑chip stocks?
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