Governments aren’t generally known for innovation, but government policy greatly influences – both positively and negatively – the level of innovation in an economy.
An opinion piece by Jack Mintz in the Financial Post looks for the Federal Budget, due to be introduced in 2 weeks, to bring changes to create a more friendly investment climate.
Last year’s federal budget was strewn with anti-innovation policies, bringing back the failed tax credit for labour-sponsored venture corporations and bringing in higher taxes on business and entrepreneurs. If this year’s budget brings in higher capital gains taxes and more regulatory burdens and subsidies targeted at the wrong firms, all that talk of innovation will be empty. We won’t likely see it improve.
If we want more innovation, we’ll need to make Canada friendlier to investment, particularly in the face of the rising competitiveness of the U.S. under the Trump administration.
Instead, a more business-friendly environment for investment should be our aim in face of a new U.S. competitive environment now confronting Canada.
Setting the right climate influences not only whether innovation takes place, it influences where. Our policies need to encourage investment and growth inside Canada. As Mintz concludes, “If Morneau really wants more [innovation] in Canada, he should avoid trying to pick favourite sectors to treat with subsidies and spending and instead create a better environment for businesses to invest in new ideas.”
Innovation and innovation policy will figure prominently on the agenda for The 2017 Canadian Telecom Summit, taking place June 5-7 in Toronto.
Among other issues, panels and keynote speakers will examine what are the characteristics of a policy framework that fosters the development of a more innovative economy.
The Canadian Telecom Summit brings together the thought leaders and key influencers of the Canadian and global ICT industry.
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