Departments and agencies can act as the first customers for new products, giving companies a reason to keep researching and developing technologies, according to a new report from the Council of Canadian Innovators (CCI). (The Logic)

Talking point: Governments around the world have revived industrial policy, in which they fund sectors and companies they believe are economically or strategically important. The CCI report argues Canada can’t match the sums other countries are spending, or protect its firms via tariffs. So it calls for governments here to stop offering a menu of innovation programs, research grants and tax credits and instead focus on buying from specific companies that are developing new technologies. Ottawa is already looking to update its purchasing practices—over the summer, the federal innovation department consulted on a proposed target for procurement from small and innovative firms.