I've worked for a couple of startups in Montreal. Their biggest competitive advantage was always that they could do things for less. This is because wages are low and so is the cost of living.
I don't think that undercutting your competitors is a viable long term business strategy since you end up being cheap labor. This also discourages innovation since the focus is on copying what someone has already done and doing it for less.
There is already a lot of talent in Montreal but if Montreal is to become an open source startup hub, it needs to change this cheap labor mindset into one of innovation.