R&D support in Canada: State of play and recent changes

11/19/2012

David Boisclair and Anne Motte, economic consultants
With Canada's lackluster R&D performance, the need is acute to devise effective strategies that encourage businesses to innovate. The challenge is far from small: Canadian business enterprise R&D has been falling since 2007, in spite of comparatively generous measures. Having supported R&D largely through indirect measures (mainly its R&D tax credit), the government recently opted for a change: beginning in 2014, it will downsize the tax credit and divert the savings to direct measures to support business innovation (mostly grants and partnerships). Issues in Brief

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