Innovation is about turning knowledge and creativity into value. How can this be done? The ‘what if?’ questions in this paper, the third in a series of four, are designed to provoke constructive dialogue about innovation among Canadians.
Document Highlights
Canada’s tax incentives related to innovation are largely geared to knowledge creation (R&D), not to commercialization or diffusion of knowledge. To remedy this situation, what if the tax system encouraged innovation in the broadest sense? What if specific measures were introduced to promote the purchase of technologically advanced equipment and patents and licence agreements; provide temporary relief in the form of lower corporate income tax rates or tax credits for income generated from sales of new products and services; and encouraged collaboration between SMEs and universities/government labs/large firms? It should be noted in this context that taxation is a pervasive issue affecting most aspects of our economy and society, including innovation. Before acting on the above suggestions, it will be essential to review the structural impact this might have on the overall Canadian system.
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