Canada: A Nation of Builders Ready to Shape the Future
Canada has long been recognized as a nation of builders, with a rich history of innovation in infrastructure, technology, and industry. However, the time has come for Canada to rechannel that building spirit into fostering businesses that can thrive in an increasingly competitive global landscape.
Navigating Economic Uncertainty
The current economic environment is fraught with challenges, particularly as the United States seeks to undergo profound restructuring that could inadvertently destabilize the global economy. This economic turbulence poses significant risks for Canadian businesses, emphasizing the necessity for strong, decisive leadership to manage uncertainty. Mark Carney, a respected figure with a blend of financial expertise and political will, has visioned a pathway that aims to not only protect the Canadian economy but also foster growth, investment, and innovation.
Declining Business Investment: A Call for Action
Despite its potential, business investment in Canada has seen a troubling decline—from 14% of GDP in 2014 to a projected 11% in 2024. This downturn undermines long-term economic growth and hampers the ability of Canadian workers to secure higher wages. To revitalize Canada’s business landscape, a fundamental change in approach is necessary. Acknowledging the crucial role that builders, investors, and small businesses play in fortifying the economy is vital. Carney’s administration has made early strides in this direction, such as reversing the proposed hike in the capital gains inclusion rate, which is set to encourage investment and support the entrepreneurial spirit.
Building Ambition: Strategies for Growth
Canada hosts a wealth of innovators and entrepreneurs whose ideas are often lured south of the border. Ensuring that these creative minds thrive within Canadian borders is critical. Carney’s government intends to take bold action to make this a reality. The focus will be on enhancing investment incentives, spearheading increased private sector engagement in research and development, and directly supporting startups to ensure they flourish.
Key Initiatives for Business Sustenance
1. Competitive Investment Climate:
To keep Canadian companies internationally competitive, the government aims to extend immediate expensing for critical investments in the manufacturing sector and clean energy. This includes the Accelerated Investment Incentive, which could stimulate opportunities for innovation.
2. Revamping R&D Support:
An increase in the claimable amount under the Scientific Research and Experimental Development Tax Incentive Program (SR&ED) aims to promote greater investment in research and development, ensuring that Canadian firms remain at the cutting edge of innovation while competing on a global scale.
3. Startup Ecosystem Enhancement:
To breathe life into the startup ecosystem, the Venture Capital Catalyst Initiative (VCCI) will be recapitalized by a significant $1 billion. This funding is expected to catalyze investments into high-potential Canadian startups, ensuring that innovative ideas find a home here rather than migrating to the U.S.
Fostering Innovation with Flow-Through Shares
Introducing flow-through shares to Canadian startups is set to bolster investment in sectors such as AI, quantum computing, and biotechnology. This initiative will allow companies to issue shares enabling investors to directly deduct eligible R&D expenses from their taxable income, making it less risky for them to invest in burgeoning businesses.
Intellectual Property and Talent Retention
Establishing a Canada Patent Box is crucial for encouraging businesses to develop in Canada rather than transferring their innovations abroad. By rewarding builders for remaining within Canadian borders, this initiative seeks to secure local job creation and intellectual property retention.
Diverse Economic Empowerment
Recognizing the role of diverse communities in enriching Canada’s entrepreneurial landscape, a permanent Black Entrepreneurship Program with ongoing funding is a commitment that aims to uplift Black-owned businesses, contributing to a resilient and sustainable economy.
Future-Ready Industries
Strategic industries such as biomanufacturing, quantum computing, and ag-tech are pivotal for maintaining Canadian sovereignty and security. These sectors not only promise high-paying jobs but also play a crucial role in ensuring that Canada can independently produce vital goods, including vaccines and food products.
Embracing Artificial Intelligence
As the global economy shifts towards technology-driven solutions, Canada must catch up in the realm of Artificial Intelligence (AI). With a rich legacy in AI development, it is critical for Canada to rejuvenate and expand its AI capabilities to enhance productivity. Investing in AI infrastructure—such as modern data centres—and encouraging AI adoption among small and medium-sized businesses will be integral steps towards building a tech-enabled, modern economy.
Championing Research and Scientific Endeavors
The sanctity and vitality of research and scientific inquiry face challenges from ideologies that undermine evidence-based findings. Supporting scientists, researchers, and innovators is essential for Canada to harness domestic talent for global challenges. Initiatives to create funding avenues for critical research will ensure that Canadian expertise in STEM fields can flourish, contributing significantly to economic and technological advancements.
Attracting Global Talent to Canada
To ensure that Canada remains a haven for top talent, the proposed Canadian Sovereignty and Resilience Research Fund aims to attract world-class researchers and their projects. By offering supportive measures, the initiative seeks to reverse the brain drain that has seen Canadian talent migrate to more favorable conditions elsewhere.
Through these concerted efforts, Canada can harness its legacy as a nation of builders and innovators, pivoting towards a future that nurtures growth, attracts investment, and champions the entrepreneurial spirit. The time for action is now, and under a leadership inspired by Mark Carney’s vision, Canada is poised to reclaim its status as a leader in global business and innovation.
