CCI Response to the 2025 Federal Budget

On behalf of our members — more than 175 Canadian-headquartered scale-up technology companies — CCI President Benjamin Bergen issued the following statement about the 2025 federal budget:

“Today’s budget represents an important step toward building trust with Canada’s innovators and the broader business community. For the first time, we’re seeing the federal government embrace a serious conversation about economic sovereignty — and that shift in focus is both welcome and overdue.

“We are pleased to see meaningful progress on priorities that CCI and our members have been advocating for. The government’s commitment to SR&ED reform demonstrates that they’ve been listening to innovators. For years, we’ve called for modernization of this cornerstone program, and seeing concrete movement is encouraging. Similarly, the procurement efforts to buy strategically from Canadian firms — paired with Prime Minister Carney’s Buy Canadian policy — represent exactly the kind of intentional, strategic approach that can make a difference. These must not be symbolic gestures, and require substantive policy shifts for business leaders to see these promises realized.

“True sovereignty requires more than spending. It requires understanding that in the 21st century, economic value is created through the generation and ownership of intangible assets, proprietary datasets, and control of intellectual property. Most critically, it requires defining which companies qualify as truly Canadian, and structuring policy to ensure they remain so.

“However, Canada still lacks a clear definition of what constitutes a sovereign Canadian company. Without this foundational clarity, we risk deploying these investments in the same status quo way — funding growth that ultimately benefits foreign interests rather than building enduring Canadian economic power.

“While Minister Champagne speaks of hundreds of billions in government investments, investments are only measured by the value of their returns. Without a clear strategy to capture those returns for Canada, we’re left with government spending, not strategic investment.

“In the weeks ahead, it will be essential for Prime Minister Carney and his team to work closely with CEOs and industry leaders to shape the programs, policies, and procurement strategies that will drive the success of Canadian-headquartered companies across the country. CCI looks forward to continuing our collaboration with the government to ensure it draws on the expertise of Canada’s innovation leaders in building the economic strategies that will power long-term national prosperity.”

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Specific Policy Commentary

On Canada’s increased defence spending:

“This is Canada’s chance to do defence procurement right. Innovative Canadian companies are building world-class dual-use technology, and if Canada helps those companies scale-up, they can sell their technologies to allies and non-military markets around the world. The budget increases spending on defence, but if we don’t prioritize domestic procurement, we’re funding someone else’s industrial base, not our own. Procurement reform isn’t optional anymore. It’s core to Canada’s national sovereignty.”

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On reforms to the Scientific Research & Experimental Development tax credit:

“CCI has been calling on the government to modernize the Scientific Research and Experimental Development tax credit for many years, because SR&ED is the cornerstone of Canada’s innovation funding system. Technology companies intimately understand how important this program is, and how much it shapes innovation in Canada.“It is welcome news to see that the government is moving ahead on reforms, as CCI had called for. But we’re not done. If we want companies to stay Canadian, we need to prioritize homegrown firms.”

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On federal government procurement reform:

“Government procurement is the most impactful way to scale Canadian companies. The government’s decision to move ahead with a SME procurement program is aligned with CCI’s calls to improve how we buy from innovators – but details matter. When government buys from homegrown innovators, it doesn’t just support growth. It creates anchor customers that help our scale-ups compete globally. Paired with Prime Minister Carney’s recent Buy Canadian policy, we see a government that is meaningfully interested in collaborating.”

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On regulating stablecoins improving opportunities for fintech innovation:

“Regulating stablecoins as payments infrastructure is the right call. The US and EU have moved. Canada needs to keep pace. Combined with progress on Open Banking and Real-Time Rail, we’re finally building a modern payments system. A framework that enables Canadian stablecoins, with strong safeguards, means our companies can compete in digital payments instead of watching from the sidelines.”

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On funding for Canada’s housing crisis:

“Canada’s housing crisis demands scale. Modular construction and mass timber can deliver it. We have world-class companies in both sectors and the natural resources to back them. Smart housing policy doesn’t just build homes. It builds industries.”

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On Intellectual Property and the Innovation Asset Collective:

“Intangible assets are the life-blood of the 21st century economy, and Canada still has a long way to go in prioritizing intellectual property strategy as a key factor of global competition. The Innovation Asset Collective is mandated to do exactly this work, and we’re happy to see the government has renewed their funding to ensure that they can continue to educate and support Canadian companies in developing their IP strategy.”

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On Immigration strategy:

“Every successful Canadian technology company includes skilled professionals who were born elsewhere and chose to move to Canada. CCI worked closely with the government to create the Global Talent Stream, and this program in particular has been a vital avenue for Canadian companies to bring highly-skilled talent to Canada, to propel the growth of innovative businesses and create wealth for the Canadian economy. Moves to secure H1B visa holders are valuable. As the federal government recalibrates immigration policy, our leaders must ensure that they do not lose sight of the economic benefits that immigration brings for Canada.”

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On sovereign cloud and AI:

“Cloud and compute capacity are the railroads of the 21st century – critical infrastructure that enables commerce that Canada must control. Investments in sovereign cloud and compute capacity are a welcome investment in Canada owning our own future.”

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Contact médias :

James McLeod
Director of Communications
jmcleod@canadianinnovators.org