What Is the Long-Term Vision for Quebec’s Economy? A Look Back at the Latest Parliamentary Session

By Jean-François Harvey
Director of Quebec Affairs

As we look back at the past few months in Quebec, it’s not an overstatement to say that Quebec’s economy is not heading in the right direction. As an example, the province's GDP dipped slightly in February, and the province’s credit rating was downgraded from AA- to A+, something not seen in over 30 years. The province is in desperate need of an economic strategy that places innovation at the heart of its priorities.

In this regard, the 2025 budget was a step in the right direction. We welcomed the reforms to the tax system and the regulatory adjustments aimed at making certain programs more beneficial for businesses headquartered in Quebec. However, these measures are bound to be ineffective if they are not part of a broader economic strategy. Premier François Legault has made it his goal to close the economic gap with Ontario. His administration has never hidden its nationalist values and has frequently highlighted them during its mandate. Given that, it’s difficult to see the rationale behind decisions that appear to prioritize the interests of foreign multinationals over Quebec’s own economic priorities.

Here are a few examples where the government’s actions have not matched its words:
‍

Is Nationalism Incompatible with Economic Development?

The defense of the French language in Quebec is extremely important. And it is possible to combine it with strong wealth creation. In the same vein, a resolutely nationalist economic strategy is not doomed to fail. Several countries have adopted such approaches with great success. The problem is that this government tends to abandon this approach when it comes to major projects. There are many examples:

• The SAAQClic project, marred by cost overrun, which was largely led by LGS, a subsidiary of U.S. giant IBM.
• The Northvolt project, the largest private investment in Quebec’s history, where the red carpet was rolled out for a young Swedish startup, with little regard for local competitors.
• The digital health file, where it seems we’re putting all our eggs in the basket of Epic Systems, another American multinational.

Additionally, Bill 14, aimed at strengthening the protection and promotion of French in Quebec, continues to create uncertainty in the province. Several provisions of the bill will come into effect over the summer, while many entrepreneurs remain unclear on its implications. Why does it appear that language protection and economic development are being treated as competing priorities, rather than goals that can be advanced together? For a government committed to closing the economic gap with Ontario, this approach is, to say the least, puzzling.
‍

A Government Trying to Divert Attention?

As we highlighted earlier in this article, several economic indicators show that Quebec is heading in the wrong direction. Québec’s welfare state is under severe pressure and needs to be retooled.

Meanwhile, the government has decided to pick  a fight with doctors. Health Minister Christian Dubé suggested that physicians were largely to blame for the issues in Quebec’s healthcare system and that they weren’t available enough for their patients. I won’t comment on whether this approach is justified or not, but considering the timing and the government’s current position, it comes across more as a political strategy to deflect attention from other pressing issues.

Premier Legault’s government has done several positive things for Quebec innovators since the beginning of its mandate. It has shown ambition and repeatedly stated its intent to put Quebec’s interests first. However, it seems incapable of being consistent, as illustrated by the examples mentioned above. And we haven't even started on Quebec’s procurement strategy, which still makes it harder for young local companies to enter the procurement pipeline compared to foreign multinationals.

If Premier Legault wants to close the gap with Ontario, he needs to think differently about where growth will come from. It won’t be through marginal tax tweaks or splashy foreign investments. It will come from enabling Quebec companies to build globally competitive firms that stay headquartered here, pay taxes here, and create good jobs here. That requires a deliberate strategy to support commercialization, reduce friction for local procurement, and build long-term partnerships with Quebec’s innovation leaders.

Innovation and productivity growth are essential to that goal. Without them, the economy will remain stuck in low-growth mode—reliant on subsidies and vulnerable to external pressures. Quebec has the talent and the ambition; what’s missing is a policy environment designed to help firms scale.

We’ve laid out a roadmap in A Mandate to Innovate, including concrete steps the government can take—starting with making procurement a driver of innovation and economic strength.

Quebec’s innovators are ready to lead—what remains to be seen is whether the government is ready to work with them.

‍

About the Council of Canadian Innovators

The Council of Canadian Innovators is a national member-based organization reshaping how governments across Canada think about innovation policy, and supporting homegrown scale-ups to drive prosperity. Established in 2015, CCI represents and works with over 150 of Canada’s fastest-growing technology companies. Our members are the CEOs, founders, and top senior executives behind some of Canada’s most successful ‘scale-up’ companies. All our members are job and wealth creators, investors, philanthropists, and experts in their fields of health tech, cleantech, fintech, cybersecurity, AI and digital transformation. Companies in our portfolio are market leaders in their verticals, commercialize their technologies in over 190 countries, and generate between $10M-$750M in annual recurring revenue. We advocate on their behalf for government strategies that increase their access to skilled talent, strategic capital, and new customers, as well as expanded freedom to operate for their global pursuits of scale.