
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
Canadas 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 countrys 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.