While “let’s give every Canadian $10,000” does not appear in the newly released 2025 Canadian federal budget (one can dream), the word “investment” does appear over 800 times.
“Sovereignty” comes up 81 times.
“Productivity” is mentioned over 150 times.
“AI” is featured 56 times.
“Buy Canadian,” a phrase never found in previous budgets, shows up 20 times.
For Benjamin Bergen, president of the Canadian Council of Innovators (CCI), these word counts mark a shift in how the federal government is framing its economic priorities.
“Today’s budget represents an important step toward building trust with Canada’s innovators and the broader business community,” he said in a statement on behalf of CCI members.
“For the first time, we’re seeing the federal government embrace a serious conversation about economic sovereignty — and that shift in focus is both welcome and overdue.”
That conversation, Bergen told tech leaders during CCI’s post-budget debrief Zoom call, is just getting started. The 2025 budget may lay the groundwork for a new era of “Buy Canadian” policy, but translating intent into impact will take more than rhetoric.
“How are we making sure that dollars that we’re investing in procurement are actually going to domestic firms when we talk about ‘Buy Canadian’?” he asked attendees.
For Canada’s innovators, this question will shape how this budget is remembered. Could it be a turning point for Canadian firms or will it be another missed opportunity.
Defining “Canadian”
Sovereignty has been a running theme in policy discussions over the last year.
Daniel Perry, CCI’s director of federal affairs, said it’s a fundamental issue.
“It is essential for Prime Minister Carney and his team to work closely with CEOs and industry leaders to shape programs, policy, and procurement strategies that will drive success for Canadian headquartered companies across Canada,” he said.
But what does “Canadian” really mean in this context?
Perry stressed that the CCI continues to press for a clear definition of what qualifies as a Canadian company.
“Without a foundation of clarity, we risk deploying these investments that we see in this budget in the same status quo ways, and funding growth that ultimately benefits foreign interests rather than building an enduring Canadian economic power,” he said.
Bergen made the same point in CCI’s statement.
“True sovereignty requires more than spending,” he said. “It requires understanding that in the 21st century, economic value is created through the generation and ownership of intangible assets, proprietary datasets, and control of intellectual property. Most critically, it requires defining which companies qualify as truly Canadian, and structuring policy to ensure they remain so.”
That clarity will help determine whether Canada builds an innovation economy anchored by domestic ownership or one that continues to scale foreign subsidiaries.
“Investments are only measured by the value of their returns,” said Bergen. “Without a clear strategy to capture those returns for Canada, we’re left with government spending, not strategic investment.”
Turning investment into outcomes
This year’s fiscal plan totals $585 billion, with a $78.3-billion deficit. It includes new measures across innovation, defence, and digital infrastructure.
For tech firms, one of the most significant changes is the modernization of the Scientific Research and Experimental Development (SR&ED) program.
“The budget confirms structural modernization for the tax credit, which focuses on speed, scale, and commercialization,” said Perry.
The refundable tax credit now applies to the first $6 million of eligible spending, up from $4.5 million. For the first time, newly eligible Canadian public companies can also participate.
“The government has reaffirmed its commitment to including capital expenditures,” added Perry, “which was a long, long ask of this community, and we’re happy to see it there.”
Bergen called the reform a sign that Ottawa is listening.
“The government’s commitment to SR&ED reform demonstrates that they’ve been listening to innovators,” he said. “For years, we’ve called for modernization of this cornerstone program, and seeing concrete movement is encouraging.”
But as Perry put it, the success of these reforms will come down to follow-through.
“Announcements don’t make scale,” he said. “Contracts do.”
Sovereignty as economic strategy
CCI leadership sees a broader shift in how the federal government defines national competitiveness.
The budget includes $81.8 billion over five years in defence spending and new authority for the Canada Infrastructure Bank to invest in digital infrastructure and artificial intelligence.
“This is Canada’s chance to do defence procurement right,” said Bergen in his statement.
“Innovative Canadian companies are building world-class dual-use technology, and if Canada helps those companies scale up, they can sell their technologies to allies and non-military markets around the world. The budget increases spending on defence, but if we don’t prioritize domestic procurement, we’re funding someone else’s industrial base, not our own. Procurement reform isn’t optional anymore. It’s core to Canada’s national sovereignty.”
Laurent Carbonneau, CCI’s director of policy and research, said the tone of this budget marks a notable change.
“The Carney government’s vision from the beginning has been very much that the best thing Canada can do to have a solid footing in dealing with that very difficult relationship [with the U.S.] is to put itself on a stronger economic footing,” he said. “The contrast with the 2024 budget, which is, I think, the worst in memory for innovators — the conversation has changed. The tone has changed. The focus has changed.”
Carbonneau added that future prosperity will depend on supporting firms that create value through intangible assets rather than just physical infrastructure.
“There’s a need to catch up on a lot of traditional industries that have perhaps not seen as heavy investment in the last 10 years or so,” he said. “That’s welcome, but what’s going to build prosperity in Canada is having more scaling firms that are building off of their intangible assets.”
Building momentum, not symbolism
For CCI, this budget marks progress, but not completion. The organization plans to keep working with Ottawa on execution and accountability.
“These must not be symbolic gestures,” said Bergen. “[They] require substantive policy shifts for business leaders to see these promises realized.”
As optimism meets caution, CCI’s focus is on making sure commitments translate into action.
Added Perry, “we need to make sure that the Canadian companies are front of mind for this government.”
Final shots
- The 2025 budget signals a shift toward economic sovereignty and homegrown innovation.
- Execution, not language, will determine whether investments translate into national advantage.
- Keeping Canadian companies front of mind will decide if this new approach builds lasting results.
Watch CCI’s 2025 Federal Budget Debrief for Canadian Tech Leaders
