Ann Fitz-Gerald is the director of the Balsillie School of International Affairs and a professor of international security in Wilfrid Laurier University’s department of political science. Paul Samson is the president of the Centre for International Governance Innovation.
Canada, once a beacon of affordability and innovation, now faces a cost-of-living crisis and stagnation. Like the American election last year, Canadians seek a compelling vision and plan that tackles paycheques and affordability head on. The next Canadian prime minister must not only articulate this vision but also outline a clear, actionable path to make it a reality.
Canada must adopt a clear economic strategy by treating the economy like a balance sheet and focusing on expanding the “pie” through growth while boosting paycheques. At the same time, a pro-competition agenda should drive down costs and give consumers more choice, creating a dynamic, thriving economy that motivates all Canadians.
Growing the economy must align with prosperity and national security goals. This demands leadership that champions the creation and export of high-value products that are competitive in the global market. Canada must break away from an economic model reliant on importing foreign ideas – such as electric vehicles – that tether us to long-term patent and royalty payments and allow other countries to use our resources as their innovation playground, undermining our sovereignty. A new leader must prioritize Canadian innovation, fostering a marketplace of ideas rooted in Canadian research centres and Canadian businesses, ensuring our economic future is driven by homegrown ingenuity.
The next prime minister’s growth strategy must embrace the reality of a world driven by intangibles, where more than
90 per cent of the S&P 500′s total value is tied to assets like data, algorithms, AI and cloud computing. Intellectual property (IP) and data are today’s most critical business assets, and machine learning is a transformative, general-purpose technology quickly reshaping all sectors. Canada missed the shift to an intangibles economy by failing to prioritize the creation and ownership of valuable IP, costing the economy billions annually. While countries like China and the U.S. secured their
leadership in AI patents, Canada’s performance in this area has been in
relative decline. Reversing this trend must be central to any credible economic plan.
Like the path to economic prosperity, the tools needed for Canada’s national security are increasingly data-driven and digital. Dual-use innovations will bolster traditional economic sectors and civilian jobs while enhancing national security, defence capabilities and the skills of our armed forces and broader security sector. Canada has previously neglected this integration, which is now essential. Meeting our NATO commitments will force us to go in this direction, which is a good thing.
A compelling economic plan which makes national security and economic security indistinguishable – supported by a pro-competition and high-value productivity agenda – is also necessary to navigate the objectives of the new U.S. administration, which will push to shift its defence focus to the Pacific, reduce commitments in Europe and prioritize technological superiority. In parallel, it will insist that Canada increase its defence spending and take on more Arctic security to defend the continent.
Delivering a new economic strategy requires robust sub-strategies. For example, in an intangibles-driven marketplace, trade negotiations are less about traditional goods and services and more about regulatory frameworks. To secure the most effective trade deals, Canada should build deep knowledge in expert advisory committees, similar to the
26 advisory groups, with more than 700 civilian experts long used by the U.S. government.
Canada’s roughly $10-billion in annual research funding must protect Canadian innovation and no longer be undermined by weak IP infrastructure. Additionally, a competitive tax code and streamlined infrastructure approvals processes are essential. Finally, prioritizing the global growth of Canadian firms and adopting sectoral strategies to develop dual-use, value-added products and services is critical to securing a prosperous economic future. Our next prime minister should understand these factors, and use them to fashion a new and compelling economic vision.
www.ctvnews.ca
www.theglobeandmail.com
nationalpost.com
