Lawrence Zhang

The Canadian economy is shifting faster than its institutions are. This playbook lays out an agenda to address what Canada must fix, build, and scale in order to compete through technology.

Canada has long embraced its identity as a “middle power,” but it has the potential to be more than just a supporting player. With greater ambition and the right vision, Canada can shape global markets and emerge as a dominant force.

The goal for the next Canadian decade should be simple yet ambitious: to support and scale at least 100 mid-sized, export-oriented companies that dominate strategic niches in global markets—Canada's own generation of Mittelstand-esque champions.

Canada’s path forward requires becoming a more productive trading nation that is less reliant on external forces and more capable of turning ambition into economic power. Walking away from the most consequential trade conversation of the next decade won’t get Canada there. It has room to negotiate with the U.S. and should use that leverage to secure the full and permanent removal of tariffs.

Trump and Musk are disrupting America’s scientific community, giving Canada a rare opportunity to attract top talent and position itself as a global innovation powerhouse.

While Trump’s tariffs pose an unprecedented threat to Canada’s economy, they should serve as a wake-up call. Canadian policymakers must seize this moment to enact bold reforms that drive innovation, boost productivity, and strengthen global competitiveness.

Instead of viewing foreign tech companies as competitors to domestic innovation, Canada must embrace their complementary role in fostering a vibrant, interconnected tech ecosystem.

Canadian consumers should not have to bear the costs of the Online Streaming Act. If the creation and promotion of Canadian content is a societal goal, then it should be funded by the government.

Big Canadian telcos, grocery stores, and banks have not seen major changes in profitability over the past four years or compared to their international peers. Rising prices should not be attributed to “price gouging” but plain old inflation.

Age assurances are not the only available option to protect children online. But if policymakers are set on mandating age assurance systems, regulation should be limited to high-risk circumstances, avoid inflexible requirements, and be designed to be technologically and commercially agnostic.

Innovation, productivity, and competitiveness must be top priorities for Canada’s next federal government, not sidenotes or vague aspirations to be addressed with little more than lip service.

Legislated procurement targets for SMEs should be a tool to stimulate technology R&D and commercialize Canadian innovations, and not a goal in and of itself. Focusing on firms that develop innovative solutions for government problems will create opportunities for Canadian firms to scale up and drive innovation, productivity, and competitiveness.

Watch now for an engaging discussion with leading international experts and peers presented by ITIF’s Centre for Canadian Innovation and Competitiveness.

Watch now for ITIF's launch event for the Centre for Canadian Innovation and Competitiveness, an Ottawa-based ITIF affiliate focused on tackling these issues. The event featured an expert panel discussion on a new report from the Centre examining the how and why of Canada’s performance on key measures of productivity, innovation, and competitiveness.