● United States : The QSBS exemption and regional fund strategies drive innovation finance across stages. ● Israel : Public-private co-investment structures ensure seamless capital progression from ideation to scale, complemented by the Law for Encouragement of Knowledge-Intensive Industry (Angel’s Law), which provides targeted tax incentives for early-stage investors. ● Estonia : This relatively small country has outpaced much larger economies and leads Europe in per capita venture capital investment—driven by a zero tax rate on reinvested profits, and a highly networked startup ecosystem.
Canada’s policy framework must evolve to match this ambition.
3. Three Frameworks for a Unified Capital Strategy The Unified Capital Strategy Framework emphasizes the dynamic interplay and mutual reinforcement across three interconnected dimensions essential to fostering a resilient innovation economy: Access to Capital , Lifecycle of Capital , and Sustainability of Capital .
Figure 1: Unified Capital Strategy Framework. Represented through interconnected gears, this visual illustrates how strategic action and targeted policy interventions within any one dimension—whether supporting entrepreneurs through improved capital accessibility, enhancing the flow and effective deployment of investments, or ensuring long-term sustainability via informed investor networks—set in motion synchronized actions across the entire innovation capital continuum. In this way, deliberate enhancements in a single area produce reinforcing effects, collectively strengthening Canada’s capacity to innovate, grow sustainably, and compete globally.
6
Powered by FlippingBook