Innovation, Technology, and Commercialization
Canada produces excellent research but too often allows commercialization to happen elsewhere. The gap between scientific output and real-world application shows up in weak business research and development (R&D) spending and thin technology adoption relative to Canada’s research strength. Closing that gap means redesigning the incentives, not just funding more research.
Innovation Recommendations Summary
Recommendation
Area of Reform
Level of Government
Source Document
1
Cut the SR&ED small-firm credit rate from 35 to 25 percent and raise the large-firm rate from 15 to 20 percent
Scientific Research and Experimental Development Tax Credit (SR&ED) Reform
Federal
2
Eliminate overlapping subsidies and redirect programs like the Industrial Research Assistance Program toward commercialization
Scientific Research and Experimental Development Tax Credit (SR&ED) Reform
Federal
3
Better coordinate innovation support programs
Coordinate government innovation support
Federal
Provincial
Municipal
4
Better leverage public procurement as a source of funding for innovative firms
Coordinate government innovation support
Federal
Provincial
Municipal
5
Fund more matchmaking services connecting industry and AI academics
Build the AI economy
Federal
6
Expand university AI training beyond computer science to cover general literacy, executive education, and on-the-job training
Build the AI economy
Federal
Provincial
7
Streamline data centre approvals and invest in AI infrastructure access
Build the AI economy
Federal
Provincial
Municipal
8
Launch Ottawa’s already-funded TechStat program to track AI adoption
Build the AI economy
Federal
9
Fund research based on academic excellence, not only commercial payoff
Turn university research into companies
Federal
10
Open technology transfer offices to competition
Turn university research into companies
Provincial
11
Change the federal government’s research institutes (the National Research Council) so they focus more on connecting universities with businesses instead of conducting their own research
Turn university research into companies
Federal
12
Require open access for publicly funded research
Turn university research into companies
Federal
13
Adopt a standard national protocol, modelled on the UK, for university-industry commercialization partnerships
Turn university research into companies
Federal
14
Provide financing and insurance for factory-built housing construction
Improve innovation in housing
Federal
15
Harmonize transportation rules for factory-built homes across provinces
Improve innovation in housing
Federal
Provincial
16
Set a clear regulatory path for the Real-Time Rail payment system
Open the system to new payment providers
Federal
References
Commentary 712
From Hype to Output: How AI Investment Translates to Real Productivity Gains
Wyonch, Rosalie · 2026
Commentary 689
Unleashing Innovation: Barriers, Government Support Programs, and What Works Best
Beaudry, Catherine · 2025
Building Smarter, Faster: Technology and Policy Solutions for Canada's Housing Crisis
Fariha, Tasnim · 2025
Special Policy Report
An Economic Strategy for Canada's Next Government
Lester, John · 2025
Verbatim
AI Is Not Rocket Science: Ideas for Achieving Liftoff in Canadian AI Adoption
Leyton-Brown, Kevin, Cinda Heeren, Joanna McGrenere, Raymond Ng, Margo Seltzer, Leonid Sigal, and Michiel van de Panne · 2025
Commentary 650
The Need for Speed: The Benefits of Faster Payments and How to Achieve Them
Kronick, Jeremy M., and Thorsten Koeppl · 2023
Commentary 383
From Curiosity to Wealth Creation: How University Research Can Boost Economic Growth
Howitt, Peter · 2013
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