NACO Report on a Unified Capital Strategy 102125BM10

Appendix A: (Continued)

2. Resolving BC’s Historical Limitations

Federal and provincial innovation tax credits can be designed to align administratively and complement one another without exceeding existing provincial thresholds— improving uptake while preserving fiscal discipline and unlocking national-scale impact.

BC Limitation (2001–2008)

2025 National Solution

Supporting Evidence

Harmonized federal- provincial credit framework

OECD (2023) emphasizes policy coordination to avoid inefficiencies in multi-jurisdictional innovation policies.

Fragmented provincial incentives

Staged capital progression via hybrid public- private models

Lerner & Nanda (2020) validate hybrid models for bridging early-stage funding gaps.

Lack of follow-on funding

Reinvestment incentives through capital recycling

OECD (2023) highlights liquidity mechanisms to sustain private participation.

Low retail investor returns

Agrawal et al. (2014) demonstrate reduced geographic bias in online deal sharing.

Regional capital disparities

Nationwide digital syndication

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