Ontario is set to become the first Canadian state to allow testing of self driving cars on public roads, starting January 1st 2016.
The Canadian Ministry of Transportation said that at present around 100 companies and institutions are involved in the development of connected vehicle and automated vehiclev industry in the province.
The initiative is expected to help the companies to conduct research and development of self driving technology in Ontario rather than in any other rival jurisdictions.
The province has already provided $2.45m in funding to the Ontario Centres of Excellence Connected Vehicle/Automated Vehicle Program in order to accelerate their efforts for the development of self driving cars and technology.
The province has also pledged to fund an additional $500,000 in to the Ontario Centres of Excellence Connected Vehicle/Automated Vehicle Program.
Canadian Transportation minister Steven Del Duca said: "In the world of transportation, Ontario has the opportunity to show leadership on automated technology.
"Today, Ontario is making its claim in the global marketplace by taking the next steps in automated vehicle innovation.
"The automated vehicle pilot will ensure that the province's roads remain safe without creating burdens that stifle investment and innovation in Ontario's dynamic business environment."
Companies including Daimler, Toyota, Google, Volvo, BMW have introduced self driving technology, and most of the companies have even started testing their vehicles on public roads.
Google has tested its self driving cars on the roads of California, while Daimler tested its first self driving trucks on the roads of Germany.
Volvo has also launched the 'Drive Me' project where a fleet of 100 self driving vehicles will be tested on the roads of Gothenburg in 20-17.
