Innovation and Competitiveness
The fiscal framework has a powerful impact on the pace of innovation and the competitiveness of Canadian enterprises. But a much broader range of policies affects the ability of Canadians to succeed in the global marketplace. The Council supports a competitiveness agenda that includes: reinforcing Canada’s superb pool of talent through education, training and immigration; encouraging entrepreneurship; reducing personal and corporate tax rates; fostering research and innovation; investing in public infrastructure; developing smarter regulation; demonstrating leadership on energy and the environment; and strengthening Canada’s relationships within North America and globally.
Canada has a reasonably sound regime to promote healthy competition, but it must continuously adapt to the changing realities of the global marketplace. Mergers and joint ventures must be judged on their ability to enable Canadian firms to be more nimble competitors on the global stage, and not by applying an excessively rigid definition of competition within the domestic market.
Canada has made considerable progress both in reducing regulatory restrictions on foreign investment and in creating a more attractive business environment. But to expand investment flows further, additional measures will be needed to reduce the remaining restrictions on investment and create a more competitive tax and regulatory structure.
A strong regime of intellectual property protection is needed to retain talent, encourage leading-edge research and foster more corporate head offices in Canada, while also nurturing the ability of Canada-based companies to provide value-added and highly innovative goods and services to international markets.