Conflicting Forces for Canadian Prosperity—Examining the Interplay Between Regulation and Innovation

As a part of the CanCompete project, this report contributes to the overall mandate of examining issues that affect Canada’s prosperity by exploring the complex relationship between innovation and regulation. It asks the question: Are governments within Canada investing resources in the support of further innovation, while at the same time putting the brakes on innovation through regulation? Using two sectoral case studies, literature reviews, and primary and secondary research, the research question is explored in more depth.

The findings of the report point to the reality that the supporting and constraining forces are both being put into motion by Canadian governments and that both are necessary. The true challenge is in finding and establishing the necessary balance between the two—a balance where regulation works to maintain health and safety while innovation is still encouraged and the process of innovation is not derailed by inappropriate regulation.