Seven Strategies for Canadian Government to Foster Innovation

Startup leaders are urging Prime Minister Mark Carney and his government to focus on key strategies that can streamline the path to market for Canadian businesses and innovation. In light of the current challenges facing Canada, Carney's mandate acknowledges the need for a comprehensive approach to governance, addressing issues such as affordability, housing, and international trade.

A fundamental suggestion from industry leaders is to simplify the growth process for domestic companies. Canada has seen a decline in productivity since the 1980s, and while there are signs of improvement, much remains to be done. Many startups have innovative ideas but struggle to transition from research to market. Leaders call for policy shifts that would make government support mechanisms, like the Scientific Research and Experimental Development (SR&ED) tax incentives, more accessible and less complicated.

Another critical point is the creation of a unified national energy strategy. Carney's pledge to make Canada an energy "superpower" includes fast-tracking clean energy projects. Experts emphasize the need for coordinated efforts across provinces to reduce financial risks for energy developers and encourage investments in homegrown solutions, allowing Canada to increase its sustainability efforts and reduce dependency on international markets.

Addressing talent retention, particularly in STEM fields, is also paramount. While many talented Canadians have left for opportunities in the U.S., recent political shifts could encourage them to return. Leaders propose tax incentives for companies that hire returning talent, alongside expanded government funding for ongoing skills development.

The demand for critical minerals, essential for technologies such as semiconductors and energy storage, is growing. Experts highlight the need for Canada to strengthen its supply chains, not just focusing on extraction but also on recycling and resource management. Policies could include incentives for utilizing recycled materials, fostering a self-sustaining sector.

Given the complexity of emerging technologies, it's vital for policymakers to engage with industry insiders for informed decision-making. Startup founders emphasize the importance of soliciting insights from those with direct experience in the field to gauge the feasibility of new technologies accurately.

The current permitting processes can hinder progress, so recommendations include streamlining these procedures to attract investors and accelerate project launches. Simplifying regulatory frameworks would also help startups validate their solutions more quickly and gain credibility.

Lastly, the concept of "Buy Canadian" should extend beyond consumer goods to public procurement practices. Government bodies can play a significant role in supporting domestic businesses by acting as primary customers for Canadian innovations. Streamlining sales processes for startups and providing incentives for domestic manufacturing can bolster local economies and support the growth of homegrown companies.

In summary, implementing these recommendations could pave the way for a more sustainable and innovative Canadian economy, fostering growth and empowering domestic businesses to thrive in a competitive market.