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Innovation and Competitiveness

The fiscal framework by itself has a powerful impact on the pace of innovation and the competitiveness of Canadian enterprises by influencing what it makes sense for companies and individuals to do. But a much broader range of policies affects the ability of Canadian companies to innovate and compete in the global marketplace.

In particular, governments need to emphasize the development of smarter regulatory policies rather than expanded programs as the key element of industrial strategy. In addition, support for research and development, strong intellectual property rules, more effective competition policy, and a social and business environment that encourages entrepreneurship will play key roles.

In June 2005, the Council launched its Canada First! initiative, the latest stage in our ongoing work to strengthen Canada’s competitiveness and future prosperity. Drawing on the expertise and advice of others who share our goal of a more prosperous and globally competitive Canada, the initiative will examine what can be done to improve the country’s performance in six areas that are key drivers of national prosperity: good governance, public services and infrastructure; taxation and regulation; business investment and productivity; education and research; and immigration.

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