These examples demonstrate how well-designed national policy can unlock significant private capital, strengthen innovation ecosystems, and reinforce economic sovereignty. While Canada has made important strides—through programs like VCAP and VCCI—our current policy toolkit remains fragmented, regionally siloed, and reactive. Without a nationally coordinated strategy, Canada risks losing high-potential companies, intellectual property, and capital to jurisdictions that move faster and channel investment more deliberately. A unified capital strategy is essential, not only to catch up, but to compete and lead in the global innovation economy. Without such coordination, Canada’s ability to retain control over its innovation assets—and to build autonomous, resilient growth engines—will remain compromised.
2.3 Positioning Firms for Public Procurement Opportunities
Public procurement is an important complementary lever, enabling innovative firms to scale and achieve market validation. Government purchasing represents roughly 15% of Canada’s GDP, making it one of the largest single markets available to Canadian companies. Accessing this opportunity requires firms to reach thresholds of size, compliance, and reliability that early-stage ventures often cannot meet. Capital is what enables that progression: financing allows companies to expand production capacity, invest in quality assurance systems, and secure the certifications needed to supply government clients. Without it, startups risk stalling below the scale required to compete for contracts. By increasing the supply of capital, enhancing its deployment, and sustaining its momentum, Canada can expand the pool of startups able to scale into procurement- ready firms. This positions innovative companies — not only incumbents — to participate meaningfully in public procurement and strengthen Canada’s competitiveness.
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