In the wake of the recent throne speech, Prime Minister Mark Carney and his government are poised to tackle a long list of challenges, from boosting productivity to addressing healthcare woes. But one area that can’t be ignored is the country’s innovation ecosystem. Startup leaders are urging the government to prioritize policy changes that will support businesses and drive growth.
Make it Easier for Domestic Companies to Grow
One of the biggest hurdles facing startups is the complexity of existing government programs. The Scientific Research and Experimental Development (SR&ED) tax incentives and the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) are critical for early-stage cash-flow, but they’re still too cumbersome for startups to apply for. Expanding the scope of these programs to include office or wet lab spaces would be a significant step forward. As Ayrton Energy CEO Natasha Kostenuk notes, “We need to help ventures bridge the critical gap between lab success and market adoption.”
Create a Unified National Energy Strategy
Canada’s energy landscape is in need of a coordinated push to expand clean energy generation. A unified national energy strategy would help de-risk clean energy investment and reduce reliance on volatile international markets. As Andrew Murray, CEO of Aslan Renewables, points out, “We’re asking energy developers to shoulder all the financial risk and negotiate to build in every province.” Subsidized long-term purchase agreements and feed-in tariffs could be the key to unlocking Canada’s clean energy potential.
Clear the Path for a Canadian Brain Gain
Canada has seen a southern exodus of top talent, especially in STEM fields, for years. But recent shifts in the U.S. could catalyze a reversal of this trend. Offering tax credits or other incentives to domestic companies that hire and bring expats home could be a powerful draw. As Loopio’s CEO Zak Hemraj suggests, “Government funding to develop tailored programming and training could also help build Canada’s capabilities.”
As the government begins to outline its priorities, one thing is clear: Canada’s innovation ecosystem needs a policy boost. By streamlining processes, creating a unified national energy strategy, and clearing the path for a Canadian brain gain, the government can help unlock the country’s potential and drive growth.
What happens next? As the government begins to implement its priorities, it will be crucial to monitor progress and engage with stakeholders to ensure that policy changes are effective in supporting Canada’s innovation ecosystem.
