Case Study: The Avro Arrow – A Lesson in Long-Term Policy Vision In the late 1950s, Canada stood at the forefront of global aerospace innovation. The Avro Arrow—a supersonic interceptor aircraft developed by Canadian engineers—represented a significant technological achievement and a potential foundation for sustained leadership in a strategic industry. However, in 1959, the program was abruptly cancelled despite its progress and promise. The decision resulted in the sudden displacement of thousands of highly skilled engineers, many of whom subsequently migrated to the United States and contributed to the development of NASA’s space program and the broader U.S. innovation economy. The lesson of the Avro Arrow is not just about a plane—it’s about policy. Canada made a short-term decision in a moment that called for long-term vision. And in doing so, we forfeited the chance to lead in an industry that would define the next century. Today, Canada faces a similar inflection point. The innovation economy is characterized by long-term, exponential return profiles that do not follow linear growth trajectories. The economic impact of innovative companies often emerges unpredictably over extended periods, making it difficult to anticipate through traditional models of extrapolation. Yet when strategically supported, these ventures can generate transformative outcomes—driving sustained national prosperity, technological sovereignty, and industrial resilience. As leading global powers—particularly the United States and China—intensify their investments in science, technology, and early-stage innovation, Canada must ensure it does not fall behind. Strengthening domestic innovation capacity is not only an economic imperative but a matter of economic sovereignty: long-term policy commitments are essential to building a more self-sufficient and adaptable economy—one capable of withstanding global disruptions, reducing dependence on foreign sources of innovation, and sustaining national competitiveness over time. 10. Case Study: How the UK’s SEIS and EIS Schemes Unlocked Billions in Early-Stage Capital The United Kingdom’s Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) stand as exemplary models of how targeted tax policy can unlock substantial private capital for high-risk, early-stage ventures. Policy Design ● SEIS Limits: As of April 6, 2023, the maximum amount a company can raise under SEIS increased from £150,000 to £250,000. Simultaneously, the annual investment limit for individual investors doubled from £100,000 to £200,000. Additionally, the eligibility
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