Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Federal agency saw spike in funding inquiries after Alberta cut innovation supports

Since the Alberta government cut support for innovation and tech companies late last year, the federal regional development agency for Western Canada has seen a spike in inquiries from firms in the province looking for financial backing, The Logic has learned.

Exclusive

Federal agency saw spike in funding inquiries after Alberta cut innovation supports

By Murad Hemmadi
Economic Development Minister Mélanie Joly speaks at the House of Commons in January 2020. Photo: The Canadian Press/Justin Tang
Mar 5, 2020
A A
A Small A Medium A Large
Share

Gift

Share

Since the Alberta government cut support for innovation and tech companies late last year, the federal regional development agency for Western Canada has seen a spike in inquiries from firms in the province looking for financial backing, The Logic has learned.

Talking Point

Western Economic Diversification Canada, the federal regional development agency, has experienced a surge of interest from Alberta in its funding and support services after the provincial government cut innovation programs in favour of a corporate tax cut in October 2019. Ottawa’s contribution to business R&D spending has already increased in recent years, but Alberta tech executives say it should step in to further fill the gap.

In its first budget five months ago, Alberta’s newly elected United Conservative government cancelled five tax credits, including the provincial rebates for scientific research and experimental development (SR&ED) and developing interactive digital media, as well as one for investors in companies that are inventing or commercializing new technology or in the gaming and animation sectors, among others. The government also reduced the operating budget for Alberta Innovates—which offers funding, research support and advice—by $129.7 million over the next two fiscal years. The province instead plans to lower the corporate tax rate from 12 per cent to eight per cent by 2022.

An analysis of the Alberta budget prepared by officials at Western Economic Diversification Canada (WD) said the provincial government would “reduce or eliminate several economic development programs and services, placing increased pressure on [the agency] from stakeholders to supplement this short fall.” The Logic obtained the briefing note via access-to-information request.

The agency has indeed seen that uptick in demand. “Through WD’s program outreach and engagement activities, clients and stakeholders have demonstrated an increased interest in accessing WD funding due to reductions in provincial economic development funding and programs,” spokesperson Mark Feldbauer told The Logic. He also cited the economic downturn in Alberta as a contributing factor. The agency does not record the volume of inquiries it receives, since many of its conversations with potential applicants are informal. It would not disclose whether there had been a corresponding increase in the amount of funding it had provided to Alberta-based applicants.

The office of Economic Development Minister Mélanie Joly did not answer The Logic’s questions about whether Ottawa plans to increase WD’s funding or launch any additional measures to support businesses in Alberta in response to the provincial government’s reductions. The agency has spent more than $309 million in the province since the federal Liberals were elected in 2015, said spokesperson Jérémy Ghio, adding that WD received an additional $224.2 million for programming across the last two budgets.

The Alberta government is “realigning [its] programs in order to get the best return on [its] investment,” said Justin Brattinga, press secretary to Alberta Economic Development Minister Tanya Fir. “Research, innovation, and economic development programs have a focus of investment attraction and commercialization of technology.” He cited over $200 million the province has allocated for research and innovation in its 2019 and 2020 budgets. 

In November 2019, Alberta Innovates laid off 125 people, its second staff reduction in two years, after the previous NDP government cut its budget by $76 million between 2015 and 2017. The following month, The Logic reported Toronto-based software company Wattpad had chosen Halifax over Calgary for its second headquarters, in part because of the elimination of Alberta tech tax credits. 

Shortly after The Logic reported on Wattpad’s decision, the Alberta government set up a seven-member advisory council to look at ways of attracting tech investment in the province. Brattinga said the group’s report is due on April 3. 

Some Alberta tech executives say the provincial changes have hurt the local startup ecosystem, and want Ottawa to help fill the gap. “It would be a great opportunity for the federal government to extend an olive branch to the taxpayers of Alberta,” said James Keirstead, CEO of Levven, an Edmonton-based company that makes controls for home electronics.

Levven had raised funding under the scrapped provincial investor credit, and had support from Alberta Innovates for hiring and development. It is also receiving funding through WD. “The problem with a straight tax cut is it doesn’t benefit diversification,” Keirstead said, contrasting the provincial and federal approaches to supporting innovation and noting that startups typically don’t have taxable profits.  

Edmonton-based TIQ Software, an online learning platform for employees, has previously received provincial and federal SR&ED tax credits; CEO Jason Suriano said it used its 2019 rebate from Alberta’s digital media program to hire additional staff. Accelerators and investors outside the province are now targeting firms like TIQ to move all or part of their operations elsewhere to take advantage of provincial incentives, according to Suriano. “’Instead of scaling your entire company here, you’re now contemplating fragmenting it,” he said.

Suriano called for Ottawa to institute a Canada-wide digital media tax credit akin to the federal carbon tax program—companies in provinces that don’t have a local incentive will have access to the federal backstop. “That’s an easy win [with Alberta], because they would be known for diversifying our economy,” he said.  

Businesses and provinces have been uploading an increasing share of innovation expenses to the federal government, The Logic’s analysis of Statistics Canada data shows. Under the Liberals, Ottawa has significantly boosted its funding for R&D conducted by businesses, spending $3.49 billion between 2016 and 2019—nearly double the $1.76 billion spent under the Conservatives in the four previous years. Over that eight-year period, the federal share of financing also increased substantially, from 2.06 per cent to 4.77 per cent, while the private sector dropped to 73.3 per cent and the provincial contribution was essentially stagnant.

Gift the full article

WD has previously followed provincial financial freezes with new awards of its own. Alberta Innovates stopped accepting funding applications in July 2019, and the government suspended the investor tax credit the following month as part of a pre-budget review. That September, WD announced $40.6 million in interest-free loans for 22 firms through its Business Scale-up and Productivity (BSP) program, as well as grants for local accelerators, innovation hubs, companies and universities.

The agency plans to spend $106.5 million on innovation-focused programming across all four Western provinces in the 2019–2020 fiscal year, and another $81 million on business services and growth supports such as export promotion and investment attraction. That’s up from $61.5 million and $73.5 million, respectively, in 2018–2019.

#Alberta #Western Economic Diversification Canada

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: The Canadian Press/Justin Tang

Most Popular This Week

Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi
Close-up of a red American roadside call box marked “Made in the U.S.A.,” with a blurred semi-truck approaching on Gordie Howe International Bridge.
News

U.S. industry leaders plead for truce as tariff fight escalates

By Anita Balakrishnan

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

News

Bank of Canada keeps benchmark interest rate at 2.25%

By David Reevely

Briefing

Canada’s finance minister ready to ‘say what needs to be said’ to U.S. counterpart

By Joanna Smith   |   Sep 1, 2026

Magna adds US$35M to its stake in India-based battery startup Yuma Energy

By Anita Balakrishnan   |   Sep 1, 2026

Global bond yields hit highest level since 2008 as inflation fears deepen

By Chaimae Chouiekh   |   Sep 1, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Xanadu gets $195M from federal government to build a quantum computer factory in Toronto

By Murad Hemmadi   |   Aug 28, 2026
Christian Weedbrook stands in a vacant warehouse next to a Canadian flag at a podium labelled for the Strategic Response Fund.
News

Canadian universities are still struggling to commercialize their research, new data shows

By Catherine McIntyre   |   Aug 25, 2026
Exterior of a University of Toronto building
News

Canadian investors are dumping U.S. government debt for American corporate bonds

By Chaimae Chouiekh   |   Aug 24, 2026
An image of tall buildings against a cloudy blue sky.
News

U.S. industry leaders plead for truce as tariff fight escalates

By Anita Balakrishnan   |   Aug 26, 2026
Close-up of a red American roadside call box marked “Made in the U.S.A.,” with a blurred semi-truck approaching on Gordie Howe International Bridge.
News

The Creative Destruction Lab is using data to reveal what makes startups successful

By Murad Hemmadi   |   Aug 27, 2026
People stand in large room split into several aisles by banners promoting startups. A video screen on the back wall has the logo for the CDL Super Session on it.
Analysis

Canada’s counter-tariffs would hit the Prairies hard, trade data shows

By Joanna Smith   |   Aug 28, 2026
A ground-level shot of a tractor pulling a potato harvester that drops the potatoes into a truck driving alongside it.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account