Special Report

Federal Budget 2022: What’s in it for the innovation economy

With their new budget, the federal Liberals pledge to tackle Canada’s “insidious” problem of flagging economic productivity, promising to overhaul innovation spending as last year’s pandemic rebound gives way to worries of slowing GDP growth. 

Canada has a highly educated, growing population and excellent research capacity, but its long-term growth prospects are poor because we aren’t good at turning good ideas into products, services and better business practices, the government believes. We’re short of money to deal with climate change and to invest in our future, and the need to change that quickly underlies much of the budget.

There are some big-ticket spending plans that Liberals hope will right the ship: a $15-billion Canada Growth Fund and new innovation agency; a long-awaited 50 per cent tax credit on heavy industrial carbon-capture projects, a $4-billion “accelerator” to increase housing supply, $6.1 billion over five years to the Department of National Defence and a $5.3-billion program to help dental-care affordability.

Buried further in the 280-plus-page document are also big changes central to the innovation economy, from cleantech and critical minerals, to startups and scientific research.

In all, the $425.4-billion in projected pre-debt expenses aims to “firmly pivot” the country from a COVID-19 response that came at a “significant cost,” hoping the outlay will reassure a nation where business confidence is wavering.

    Subscribe now to start reading premium, award-winning journalism.

    By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

    In-depth, agenda-setting reporting

    Great journalism delivered straight to your inbox.

    A Virginia neighbourhood with a cluster of buildings that are the newly built Amazon Web Services data centres in the background.


    OpenAI adds Microsoft as non-voting member

    TD Bank to cut 3% of its workforce amid profit slump

    Canadian energy companies face pressure to cut emissions as COP28 begins

    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.

    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