Review of federal support to research and development : Export panel consultation paper

Innovation by business is a vital part of maintaining a high standard of living in Canada and building Canadian sources of global advantage. The Government of Canada plays an important role in fostering an economic climate that encourages business innovation, including by providing substantial funding through tax incentives and direct program support to enhance business research and development (R&D). Despite the high level of federal support, Canada continues to lag behind other countries in business R&D expenditures and this is believed to be a signficant factor in contributing to the country's weak productivity growth. Recognizing this, Budget 2010 announced a comprehensive review of federal support to R&D in order to maximize its contribution to innovation and to economic opportunities for business.