private capital landscape. Canada risks falling further behind unless it adopts similarly ambitious, coordinated policies. 6. Complementary Measures While this report emphasizes capital supply, it’s crucial to recognize complementary measures that address other dimensions of innovation finance, notably on the demand side. Initiatives such as strategic public procurement play a significant role in helping startups scale, commercialize innovation, and achieve market validation. Additionally, existing government matching fund programs, notably the Venture Capital Catalyst Initiative (VCCI) and Venture Capital Action Plan (VCAP), complement efforts to mobilize private capital. Expanding these successful deployment-focused initiatives to further support pre-seed and seed-stage investment would strengthen the overall capital continuum. Strategic enhancements to established programs, including the Scientific Research and Experimental Development (SR&ED) tax credit and the Strategic Innovation Fund (SIF), represent important complementary mechanisms. Aligning these initiatives more closely with Canada’s innovation-driven sectors would amplify the effectiveness of an NITC by improving the environment into which this newly mobilized private capital flows. Additional capital supply tools—such as Flow-Through Shares (FTS) adapted specifically for startups—could further increase the pool of private capital available, despite potential complexities in implementation and longer timelines. These complementary measures together ensure that the NITC integrates seamlessly into a cohesive ecosystem strategy, significantly enhancing Canada’s innovation financing landscape. Further, existing and proposed mechanisms would be strengthened by addressing increased national coordination, information flow, and market discovery in regional innovation ecosystems. 7. Conclusion Canada must act with boldness and clarity to secure its place in the global innovation economy. Implementing a National Investment Tax Credit is a necessary next step to ensure the sustainability of Canada’s innovation ecosystem. Evidence from provincial programs demonstrates significant fiscal returns, robust job creation, and increased international competitiveness. Canada now has a clear opportunity to strengthen national economic resilience and innovation leadership through immediate, targeted policy action. By strengthening the capital foundation and uniting policy support across the continuum, we can enable a Nation of Builders to emerge—one that is self-reliant, resilient, and globally competitive. The moment for bold leadership is now. Canada’s innovation economy won’t wait—and neither will the intense global competition for economic dominance. Share your insights and feedback using the form provided at www.vision2040.ca or emailing us at vision2040@nacocanada.com.
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