Canada boasts one of the world’s most stable economies, ranking 10th globally regarding GDP size, owing largely to lucrative government support for industries and trade agreements with the world’s largest economies.
Successfully leveraging public support measures is critical in establishing a competitive national and global advantage. Sector specific financial support is available at both federal and provincial levels in the form of direct grants, tax credits, and loan guarantees. Through specific government programs, companies in various sectors can subsidize the growth and development of globally competitive industries, with tax credit incentive programs that are emulated internationally.
On average, the biotech industry contributes about $78.3 billion to Canada’s GDP annually, and is continuing to grow. In fact, at this point in time it is seven times larger than it was ten years ago. In addition to a vibrant ecosystem made up of industry-leading research centres and hospitals, Canada’s life sciences sector benefits from a variety of lucrative funding programs to offset the costs of clinical trials and R&D, talent acquisition, and business growth.
The manufacturing industry accounts for over 10% of the Canadian GDP with more than $350B in annual exports. Aircraft and automotive manufacturers are among the biggest players in this industry with Canada currently positioned as the fourth largest automobile exporter. Funding programs are critical in the manufacturing sector to support the costs of R&D, adoption of technology, and training/ hiring, export, and facility expansion.
Agriculture and Food Processing
Agriculture and Agri-food continue to play an important role in federal and provincial economies, making a significant $110B contribution to Gross Domestic Product (GDP); however, market volatility has added a heightened level of uncertainty associated with the production and development of agriculture and agri-food products in Canada, resulting in higher competition. As a major global supplier of agricultural products, the provincial and federal governments provide more than $3B in funding and support to Canada’s agriculture and agri-food sector through a variety of grant and loan programs.
Canada is a global leader of energy production and exports and is identified globally as a center of energy expertise finance with vast oil and gas reserves that are concentrated in the Northern Territories, Alberta, and British Columbia. Canada’s contribution of emerging renewable energy sources in total electricity generation has grown steadily at an average annual rate of 12% over the last twenty years, with wind power generation leading in industry expansion. Government funding can help to offset costs in developing technology to harness energy from renewable sources and compensate for reductions in Tariff Programs for renewable energy generation.