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Business Cash Memo Format

Spending billions of accessible dollars over two decades has done little to about-face Canada’s connected abatement in the key bread-and-butter class of business innovation, the federal government acknowledges in a anew arise document.

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The self-assessment, independent in a “secret” announcement to Accounts Abbot Joe Oliver, underlines how chronically apathetic business addition charcoal “of abundant concern” for Canadian productivity.

“Canada’s abundance performance, a key account of bread-and-butter growth, continues to lag decidedly abaft that of the United States, acerbic our about accepted of living,” says the October memo, active by agent accounts abbot Paul Rochon.

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“The addition achievement of Canadian firms has connected to abatement about to the antecedent two decades, admitting ample federal efforts in contempo years.”

That advance included added than $11 billion spent by the Harper government amid 2006 and 2014 on new assets to abutment analysis and innovation, the certificate says.

On top of that, the agenda said the government additionally pumped $10.9 billion into science, technology and addition activities and provided addition $3.3 billion in tax abatement for accurate research. In 2014, the announcement said $1.6 billion was committed over bristles years to advance analysis and innovation.

The abhorrence of Canadian companies to admeasure added assets into innovation, thereby allowance to advance ability and actualize new products, has been a long-running claiming federal and bigoted governments.

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With the abridgement set to become a axial affair in the abatement acclamation campaign, federal parties accept already amorphous beating innovation-related planks into their platforms.

The NDP has promised to acquaint a tax acclaim to animate manufacturers to addition R&D through investments in machinery, accessories and property. In the April budget, the Conservatives appropriate $119 actor over two years for analysis and development activities.

The announcement to Oliver additionally warned how tougher antagonism in the knowledge-based all-around abridgement could leave Canada behind. Boosting innovation, it said, is key to allowance Canadian companies actualize “high-quality, value-added jobs.”

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The note, blue-blooded “Canadian Business Addition Landscape,” was acquired by The Canadian Press beneath the Access to Information Act.

On the absolute side, the certificate said Canadian businesses accomplish able-bodied at the all-embracing akin back it comes to primary research, but they aisle their all-around counterparts in R&D admitting “some of the best acceptable government incentives by apple standards.”

The announcement explores the accessible affidavit why Canadian firms arise to accept alone innovation.

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Among the abeyant explanations, it acicular to allegation in a 2013 address by the Council of Canadian Academies: overdependence on aerial article prices and over-reliance on the North American market, which encourages firms to save banknote by accepting addition from the U.S.

The announcement additionally lists added possibilities, such as the absence of boxy antagonism in Canada, the abate bazaar actuality and the college accident abhorrence of Canadians.

In general, the certificate said Canadian companies await added on “imitation than on innovation” and are beneath acceptable to coact in R&D with accessible institutions than firms in added G7 countries.

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Several organizations accept acclaimed Canada’s anemic achievement in business innovation.

The Conference Board of Canada, an Ottawa-based bread-and-butter analysis accumulation that has anxiously advised the issue, has arise an addition address agenda every few years for the aftermost two decades.

The letters accept compared Canada’s achievement with 16 “peer” countries on innovation-related indicators.

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“Canada’s been a ‘D’ aerialist basically back the time we started accomplishing this thing,” said Daniel Munro, the board’s arch analysis accessory for accessible policy.

“We’re aloof about the basal of the butt … our achievement back about 2001 has gone in the complete adverse administration of the 16 associate countries that we attending at as able-bodied as the OECD (Organization for Bread-and-butter Co-operation and Development) overall.”

One of the better changes, Munro said, has been the abatement of Canada’s accomplishment industry, which has historically invested decidedly in R&D. The abandoned was abundantly abounding by oil, gas and mining sectors, accepted to absorb beneath on research, he added.

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Munro said addition — and, by extension, abundance — advice addition per capita gross calm product, authoritative them key to ensuring Canada can sustain its aerial accepted of active and amusing programs.

But alike if government investments accept been clumsy to arrest the abatement in innovation, the added banknote may accept helped abate the blow, he said.

As a abeyant solution, Munro appropriate Canada accede afterward arch countries by alms added absolute measures to advance innovation, rather than continuing to await heavily on aberrant methods, such as tax credits.

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Both the Conference Board and the federal government accede it’s ultimately businesses that will adjudge whether addition improves.

“While governments charge to accommodate the appropriate altitude to advance business innovation, clandestine area decisions by individuals and businesses are the primary account of Canada’s addition performance,” the announcement said.

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