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Canadian Vehicle Manufacturers' Association

Submission — Canadian Vehicle Manufacturers' Association

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Submitter(s): Nantais, Mark

Summary: Canada's Business R&D Support Systems need significant improvement if Canada is to achieve its ambitions for productivity improvements and economic return on its investments. The SR&ED Tax Credit program is Canada's largest business R&D support program. Although it provides a very significant benefit that clearly justifies its continuation, it is not nearly the world leading program that so many non-users of the program believe it to be. To reach its potential, it needs significant improvements in the way that it is delivered, such as a reduction in the red tape associated with credit applications, better alignment with business realities, faster review and approval processes, expanded eligibility, and significant improvements in its program structure. In a highly competitive global environment, research and development jobs are increasingly being globalized. The government must make every effort to ensure that Canada has an enhanced and effective 'toolbox' of incentives to maintain and ideally grow its domestic-based advanced engineering and R&D activities and investments. To this end, the CVMA believes that the continuation of an updated SR&ED program is necessary, but that alone will not be sufficient to sustain existing or attract additional private sector investment in both research and development activities in this new era of global competition. A significant support gap also exists in the early commercialization stage between conducting fundamental and collaborative Research and the ultimate commercialization of these concepts and realizing the associated returns to business and the economy. Adding an industry focused commercialization support program would significantly increase the probability that the potential benefits from Canadian R&D concept development would be realized by supporting industry development of these concepts and ultimately commercializing them in Canada.

Full submission: PDF Version