The House of Commons Standing Committee on Industry and Technology met to study Canada's productivity and competitiveness, hearing from business leaders, economists, and representatives of universities and applied research networks.
Jim Estill, CEO of Danby, argued that productivity metrics based on dollars can create misleading comparisons, as brand value and external factors like oil prices distort the measure. He recommended expanding the SR&ED program to cover AI training and implementation, and suggested allowing businesses to delay HST payments to lower their effective cost of capital. Estill cautioned against new government programs, saying they add inefficiency, and advocated for fairer distribution of supports rather than grants that favour large companies and start-ups.
Gabriel Miller, President of Universities Canada, said universities are essential to productivity through talent development and research, but noted that many institutions lack resources to commercialize discoveries or keep intellectual property in Canada. He recommended engaging universities directly in nation-building projects like BOREALIS, partnering to scale AI adoption across the economy, and strengthening tech transfer offices and incubators. Miller disagreed with the suggestion that universities overemphasize DEI at the expense of core competencies, arguing that students are highly focused on the future.
Stephen Tapp, CEO of the Centre for the Study of Living Standards, described Canada's productivity slowdown as an emergency, with growth falling from nearly 4% annually in the post-war period to under 1% since 2000. He identified weak business investment and slow technological progress as the main drivers, and said that while governments have pursued many pro-productivity policies, results have been disappointing. Tapp recommended focusing on AI adoption, reducing regulatory burdens, improving internal trade, and using beyond-GDP measures to capture inequality and risk.
Ludovic Soucisse, CEO of the Réseau des CCTT, and Nancy Déziel, Chair of its board, explained that their 59 centres work on 13,000 projects annually with over 6,000 businesses, transferring intellectual property to SMEs. They recommended including applied research centres in major federal innovation programs, creating a rapid support program for SMEs to boost productivity, and using the defence industrial strategy to support dual-use technology development. They noted that the NSERC college program's $108-million envelope was not renewed in the last budget and called for its reinstatement.
Eric Santor, Advisor to the Governor of the Bank of Canada, reiterated that Canada faces a productivity emergency, with weak business investment and slow technology adoption at the core of the problem. He said the bank's role is to keep inflation low and stable to support investment, and to encourage public dialogue. Santor highlighted that regulatory burden and lack of competition have reduced investment, and that improving productivity in network industries like communications and finance could have broad spillover effects.
Richard Dias, a global macro strategist appearing as an individual, said Canada's productivity emergency is its biggest problem and opportunity, and that solving it would also address inflation, debt and living standards. He recommended strengthening human capital through training and immigration reform, increasing competition in concentrated markets, reducing interprovincial trade barriers, and cutting taxes and regulatory burdens to reverse capital flight. Dias argued that while the federal government's role is vital, it cannot solve the problem alone and must create conditions for private-sector investment.
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