CIC Launch Delayed Impacting Innovation Funding Landscape

Innovation News | Dec 20, 2023

Canada Delays Innovation Funding and Launch of the Canada Innovation Corp (CIC)

The Canadian government's decision to delay the launch of the Canada Innovation Corp (CIC) until potentially after the 2025 federal election has cast uncertainty over the nation's innovation funding landscape. This move, coupled with challenges in other key funding agencies, underscores the complexities in Canada's approach to fostering innovation and economic growth.

What you need to know

• The CIC, initially set to commence operations in 2023, has been postponed to no later than 2026-27, potentially extending beyond the next federal election.
• The agency was to receive $2.6 billion over four years, aimed at enhancing innovation and productivity across Canadian businesses.
• The government plans to undertake a strategic review the Scientific Research and Experimental Development program, which provides about $3 billion annually in tax credits.

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• Also, after a legislative review, the government intends to implement recommended changes to the Business Development Bank of Canada. The assessment determined that the Business Development Bank of Canada (BDC) needs to reassess its approach to risk, especially in relation to supporting equity-deserving groups, regions and sectors that are typically underserved, and new businesses. This recommendation comes in response to feedback from multiple stakeholders who have raised concerns about the BDC's excessive caution, which has resulted in restricted funding opportunities for small and medium-sized enterprises.

Benjamin Bergen, president of the Council of Canadian Innovators:

"Nearly two years later we now hear that it will be delayed by a further two years, and in reality, it is unlikely to ever be fully established in the way we had hoped."

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Meanwhile at Sustainable Development Technology Canada

Sustainable Development Technology Canada (SDTC), a key funder of green technology, is facing challenges. Operations have been suspended amid investigations into conflict-of-interest breaches and inappropriate funding. This situation has caused concern among cleantech executives about the sector's ability to raise capital. The future of SDTC remains uncertain, with potential restructuring or closure being debated.

Why It's Important

The delay in launching the CIC and the ongoing challenges within other funding bodies like SDTC highlight significant hurdles in Canada's innovation strategy. These developments not only affect current innovation projects but also have long-term implications for Canada's global competitiveness and economic prosperity in an increasingly innovation-driven world.

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• Source: https://ncfacanada.org/cic-launch-delayed-impacting-innovation-funding-landscape/