When the 45th Canadian Parliament commences next week, Prime Minister Mark Carney and his government have a long list of challenges to tackle. It鈥檚 hard to know where to start: boost productivity or address health-care woes? Bolster national unity or forge new global trade alliances?聽
In the official mandate letter released on May 21, Carney acknowledged his government鈥檚 鈥渋mmense responsibility to address these challenges head on with focus, determination and fundamentally different approaches to governing,鈥 laying out seven priorities at home (affordability, housing, interprovincial trade, government overhead, defence) and beyond our borders (U.S. relations and international trade, as well as recruiting talent through immigration).
The past few months have made it clear the electorate is committed to Canadian sovereignty 鈥 and eager to see meaningful change. 鈥淏uy Canadian鈥 has become a rallying cry, but for many in the country鈥檚 innovation community, it鈥檚 more than just a kicky slogan. On the most fundamental level, it鈥檚 the key to growing our companies, strengthening the economy and hitting sustainability goals.
We asked 10 startup leaders what the new government should prioritize to support businesses and innovation in Canada. Here鈥檚 what they told us:
Make it easier for domestic companies to grow in Canada聽
It鈥檚 no secret the country鈥檚 productivity rate has trended downward . While there鈥檚 cause for (cautious) optimism 鈥 in 2024, Canada鈥檚 GDP inched upward for the first time in three years, 鈥斅爉uch more work is needed. Canada is a in research, especially in emerging fields like AI and , but that research doesn鈥檛 easily translate into viable companies and jobs. The country鈥檚 startups don鈥檛 suffer from a lack of ideas, but for those ideas to change the world, they need to make it out of the lab, which requires scale-up capital, buyers and co-ordinated support. It鈥檚 a place where policy can play a big role.
Although founders across sectors praised existing government initiatives, they highlighted the need to streamline processes. The Scientific Research and Experimental Development (SR&ED) tax incentives and the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), which are critical for early-stage cash flow, 鈥渁re still too complicated and cumbersome for startups to apply for,鈥 notes Zak Hemraj, the CEO of software firm .
Expanding the scope of these programs is also key. Many companies struggle to cover the costs of office or wet lab spaces, which don鈥檛 qualify for SR&ED coverage. As CEO Natasha Kostenuk notes, it鈥檚 particularly challenging for ventures working on first-of-a-kind deployments and commercial demos. More support is needed, she says, 鈥渢o help ventures bridge the critical gap between lab success and market adoption.鈥 While Canada has made great strides in developing early-stage innovation over the past decade, says CEO Tom Reeves, 鈥渨e now need to set our focus on supporting these companies through the 鈥榤issing middle,鈥 with the goal of building a mature ecosystem.鈥
Create a unified national energy strategy
Hours after the election was called, Carney pledged to make the country an energy 鈥,鈥 building on his vision of fast-tracking projects and establishing an east-to-west electrical grid. He鈥檒l have his work cut out for him: the prospect of expediting approvals on mines, pipelines, transformation infrastructure and large-scale storage facilities is daunting.
鈥淐anada urgently needs a co-ordinated push to expand clean-energy generation,鈥 says Andrew Murray, CEO of . Because each province operates with its own rules and purchase structures in the current 鈥渇ractured system,鈥 he adds, 鈥渨e鈥檙e asking energy developers to shoulder all the financial risk and negotiate to build in every province.鈥 Murray points to such mechanisms as subsidized long-term purchase agreements and feed-in tariffs that serve to de-risk clean energy investment and have allowed Germany and Japan to accelerate their transition to more sustainable options. Incentivizing players in mining, transportation and manufacturing to 鈥淏uy Canadian鈥 can also be a boon 鈥 encouraging domestic businesses to adopt homegrown energy solutions would boost demand, he says, and reduce reliance on volatile international markets.
Clear the path for a Canadian brain gain
Canada has seen a of top talent, especially in STEM fields, for years. But recent shifts in the U.S., including funding cuts to government agencies, such as the NIH and major research organizations, and political pressure on colleges and universities, could . Indeed, Carney touched on in his first postelection press conference: 鈥淔or Canadians abroad thinking about returning to build their lives and our nation, there鈥檚 never been a better time to come home,鈥 he proclaimed.
While academic institutions are primed to take advantage of the moment 鈥 witness the influx of professors who鈥檝e fled north 鈥 there are fewer precedents in business. Loopio鈥檚 Hemraj suggests offering tax credits or other incentives to domestic companies that hire and bring expatriates home. During their fundraising process, Carla Spina and Serena Mandla of biotech firm identified gaps in support for continued skills development and talent retention. Expanding government funding to develop tailored programming and training, they say, could also help build Canada鈥檚 capabilities.
Build a supply chain for critical minerals
The growing demand for semiconductors, data processing machines as well as batteries and other forms of energy storage has sparked a rush on critical minerals, which are essential components of these technologies. Recent trade tensions have underscored the significance of supply chains and the need for more autonomy from the extraction of the materials to manufacturing.
It鈥檚 important that Canada looks and better manage its resources to ensure any critical minerals that are used can be effectively repurposed, says Alex Tanner, the director of government affairs at , which develops circular supply chains for rare earth elements. That could involve a recycling mandate for original equipment manufacturers, a traceability framework along the lines of the battery passport implemented in the EU or end-of-life mapping to ensure critical minerals are not simply shunted overseas. 鈥淚ncentives like tax credits for recycled domestic content can play an important role in the adoption of best practices,鈥 Tanner says. By becoming the top customers for our own materials, he adds, we can create a self-sustaining sector.
Harness insider knowledge
The challenge with emerging technologies is that they鈥檙e novel, which means it鈥檚 rare that policymakers have the subject-matter expertise to know whether or not they鈥檙e making the right decisions. Niraj Mathur, the co-founder of semiconductor startup Blumind, says the people in power should solicit input from people working in the field. He shares the example of an acquaintance working at a chip manufacturer in San Diego who was recruited by the U.S. federal government and spent two years consulting on the development of the 2022 CHIPS and Science Act. Expanding access to deep scientific knowledge is crucial for stakeholders across sectors 鈥 as the Noa Therapeutics co-founders emphasize, there鈥檚 a need to connect investors with insiders who can gauge the viability of potential technologies.
Streamline the permitting process
If, per his victory speech, Carney is eager to 鈥渂uild, baby, build,鈥 he鈥檒l need to clear the runway. Startup founders have raised concerns about convoluted and drawn-out processes that can make it frustrating (if not impossible) to get major projects off the ground. 鈥淔ast-tracking approvals will attract global investors, innovators and builders who are ready to build,鈥 says Apoorv Sinha, CEO of Carbon Upcycling.
Ayrton鈥檚 Kostenuk echoes this sentiment, noting that simplifying the regulatory process for demonstration projects would help ventures validate their solutions more efficiently and build credibility with partners and investors. Her company was recently a grand prize winner in the and is using the $1 million (U.S.) award to fund a pilot in Singapore. The end goal isn鈥檛 to export that technology,聽it鈥檚 to bring it home and deploy it on a larger scale 鈥 but red tape makes it difficult to test out early-stage technologies in Canada.
Leverage the power of procurement
鈥淏uy Canadian鈥 isn鈥檛 just a grocery-store mantra 鈥 it can be a guiding principle for the public sector. Remi Desa, the CEO and co-founder of smart transportation startup , says government bodies have an important role in catalyzing demand by becoming a first customer. 鈥淢ake it easier and quicker for Canadian startups to sell their innovative technologies directly to all levels of government,鈥 he suggests. 鈥淪treamlining the process will accelerate growth.鈥 Savvy policy moves can also strengthen domestic manufacturing, notes Sinha of Carbon Upcycling. Instead of simply taxing imports, he recommends the government incentivize made-in-Canada products. 鈥淓xpanding tax credits for projects using more than 75 per cent Canadian materials would entice multinational and blue-chip Canadian companies to manufacture in Canada,鈥 he says. co-founder Eva Wong echoes this sentiment. 鈥淚nstead of recruiting American firms to set up shop in Canada, which drives up costs for Canadian companies and deprives them of already scarce talent,鈥 says Wong, 鈥渨e should be investing in our own homegrown companies.鈥
Torstar, the parent company of the 海角社区官网Star, has partnered with to highlight innovation in Canadian companies.
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