The committee studied how to increase private sector investment in science, research and development in Canada. Appearing were Liam MacDonald from the Canadian Chamber of Commerce, Brian Kingston from the Canadian Vehicle Manufacturers' Association, Morgan Lehtinen from RXN Reaction Hub, Roxana Sultan from the Vector Institute, Dr. Gerry Wright from McMaster University, Dr. Kyle Briggs from the University of Ottawa, Kevin Dahl from ElevateIP Alberta, and Nancy Déziel and Aurélie Licois from the Réseau des CCTT.
Liam MacDonald said Canada's R&D spending at 1.8% of GDP lags behind G7 peers and U.S. incentives like the One Big Beautiful Bill Act are widening the gap. He recommended a productivity and investment tax credit, permanent full expensing for machinery and equipment, accelerated SR and ED reforms, a national patent box regime for IP income, and a national workforce needs assessment.
Brian Kingston noted automakers spent $898 million on R&D in Canada in 2024 but warned that CBSA changes to temporary vehicle import letters, tied to the new CARM system, risk disrupting testing and investment. He asked for an extension of the current process and a transition period for any new rules, saying no solution has been presented despite months of engagement.
Morgan Lehtinen argued the core problem is not a lack of university inventions but a failure to prepare them for private investment. She recommended a standardized national framework using ISO 14076 for technology validation, early structured engagement between universities and ecosystem partners, and national connection funding to link provincial innovation efforts and pilot facilities.
Roxana Sultan said Canada's 26% AI adoption rate lags the global 34% due to a translation gap between research and business application. She highlighted Vector's AI engineering team and a Deloitte study showing $10.64 in private investment for every federal dollar, recommending sustained funding for translation capabilities, support for not-for-profit intermediaries, and AI adoption requirements in government procurement.
Dr. Gerry Wright said biotech start-ups struggle due to a lack of non-dilutive seed funding, limited high-risk capital, and a shortage of experienced business talent. He recommended increasing CIHR and NSERC budgets, creating a Canadian SBIR-like program for competitive grants, and fostering an environment that rewards private risk capital and entrepreneurial talent.
Dr. Kyle Briggs said Canada should invest small amounts early in almost all research projects, accepting high failure rates for aggregate returns, and harmonize IP policies across universities. He recommended deploying venture philanthropy through a public-private partnership at a national level and adopting the SAIL licensing framework to streamline tech transfer from lab to market.
Kevin Dahl said Canada must shift from measuring R&D inputs to outputs like patents and company creation, and treat IP as a bankable asset. He recommended strengthening IP literacy and strategy support through programs like ElevateIP, bridging academia and industry with co-funded research models, and building capital markets that value intangible assets through IP-based valuation and lending tools.
Nancy Déziel and Aurélie Licois said CCTTs support 13,750 projects annually with 6,000 businesses but receive less than 4% of federal granting council funding. They recommended a permanent $108-million increase to the college and community innovation program, addressing a structural inequity where Quebec technology access centres receive $100,000 annually versus $350,000 elsewhere, full eligibility for CCTTs in federal innovation programs, and increased applied research infrastructure funding.
The meeting opened with a procedural debate about the chair approving a witness's request to testify anonymously without prior committee consultation. The chair said she informed members by email and gave them an opportunity to object, but the Bloc Québécois member argued the decision was made before consultation and undermined transparency. The committee did not resolve the matter during the meeting.
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