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CAE Inc.

Submission — CAE Inc.

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Submitter(s): Bourque, Nathalie

Summary: Technology leadership is at the core of Canada's worldwide success in Aerospace and Defence. Continued investment in technology and innovation, both on the part of companies, and through Government incentive programs is critical to maintaining market leadership. Programs such as SR&ED and the Strategic Aerospace and Defense Initiative (SADI) are key to allowing companies such as CAE Inc. to compete on a level playing field in today's global economy. Companies must make continued sizeable investments in R&D to maintain their superiority and global leadership positions. Increased levels of Federal Government support are key to maintaining a worldwide leadership in simulation. Existing incentive programs such as SADI play a pivotal role in allowing CAE to perform R&D in order to maintain its leadership in simulation; however, the Program should be modified to better address the needs of companies such as CAE that develop technology-intensive niche products for a low-volume market. Moreover, the costs incurred to refresh and evolve these products during their first development cycle and throughout the commercialization process is critical. Additional incentive programs that address aspects of innovation otherthan just technology (i.e., business process innovation, service-oriented delivery methods, etc) should be introduced and the Government's incentive portfolio would be greatly enhanced by increasing the percentage of the credit and by making the SR&ED Program fully refundable as is the case with the Quebec program. Continued and increased levels of partnership with the Canadian Government is critical to stimulating innovation in Canada by leveling the playing field internationally and ensuring continued success in a highly competitive market.

Full submission: PDF Version