Canadian Innovators Respond to the 2019 Federal Budget

What we saw:

A commitment to make the Global Talent Stream permanent:

“Canadian innovators welcome the government’s decision to make the Global Talent Stream permanent. The two-week visa processing time has been a game changer for Canadian scale-ups looking to build a team around uniquely skilled workers with global experience from outside of Canada.”

A commitment to address Canada’s skilled-labour shortage through the Canadian Training Benefit:

“Highly-skilled talent is like jet fuel for fast-growing companies so any measure the government makes to increase the skilled talent pool is welcomed by Canadian tech leaders who continue to face challenges accessing the talent they need to scale-up globally. For the Canadian Training Benefit to be successful, the government will need to work closely with domestic industry leaders to develop a strategy that closes the talent gap and helps ensure businesses have access to the talent they need to grow and expand.”

Upcoming changes to the way Employee ‎Stock Options are taxed:

“We are hopeful that in the coming weeks our members will have the opportunity to consult with the government and receive assurances that Canadian technology scale-ups, especially the most successful ones, will be spared from the planned changes to employee stock options. When only 1% of Canadian technology companies grow beyond 500 employees, the government’s priority should be on seeing more companies reach this pinnacle of success instead of penalizing those who do. These are precisely the companies we need to be nourishing, not clipping their wings, and our members intend to demonstrate that the high-growth tech sector is using stock options as a key tool to retain senior talent rather than an opportunity for tax-avoidance.”

A commitment to improve support for small, growing companies:

“While we welcome changes to the SR&ED tax credit that recognize the challenges scaling innovators face as they commercialize their inventions, we remain concerned that less than 1% of Canadian companies grow beyond 500 employees, and when they do, their continued support and success is not a priority of the government’s business innovation programs, like the Industrial Research and Assistance Program (IRAP). If Canada is to be home to large anchor companies in the digital sector, more work on the part of the government is needed.”

What we didn’t see:

A commitment to a develop a national data strategy:

“It's disappointing to see no national data strategy. Data is the essential capital stock of today's economy and Canada continues to lack a comprehensive strategy that ensures Canadians own and control the data they generate.”