uCalgary study recommends changes to Canada's R&D subsidies

December 2, 2014

A new paper released by the University of Calgary’s School of Public Policy says that Canada’s support for research and development is too generous. The study, published last week, notes that tax breaks provided to small firms come at a cost that outweighs the benefits. “We’ve put in a lot of money for R&D and if it’s not money well spent, it’s billions and billions of dollars lost a year. You have to be careful about the [subsidy] level that you offer … and then how you deliver it,” said John Lester, one of the report’s authors. Lester and co-author Jacek Warda found that Canada ranks third in the world in terms of subsidies for R&D at small firms. They suggest that taxpayers would get more return on their investment if the subsidies targeted younger, more innovative firms. Canadian Business | Financial Post | Full Report