The Scale-Up Gap
Canada ranks 8th globally for startup creation but 26th for scale-up success, according to the Global Innovation Index. Only 5 % of tech firms surpass 100 employees.
| Metric | Canada | U.S. | OECD Avg. | Source |
|---|---|---|---|---|
| Business R&D (% of GDP) | 0.9 | 2.1 | 1.6 | OECD MSTI |
| Venture Capital ($ bn, 2024) | 10.2 | 216 | — | PitchBook |
| Firms >100 employees (% of total) | 4.8 % | 8.5 % | — | Statistics Canada |
Structural Issues
- Fragmented venture capital ecosystem.
- Weak procurement channels between startups and large firms.
- Conservative risk culture in both government and corporates.
Momentum Builders
Federal IP Strategy 2.0 and the new National Innovation Fund ($3 billion) could catalyze later-stage financing — if matched by corporate demand.
What Leaders Can Do
- Act as early adopters. Pilot Canadian tech within supply chains.
- Form innovation consortia. Co-invest in R&D with smaller firms and universities.
- Align incentives. Tie procurement and sustainability KPIs to domestic innovation sourcing.
- Champion export readiness. Mentor scale-ups on governance and capital access abroad.
Arcus Insight: Innovation isn’t policy; it’s procurement. When Canada’s largest 500 firms allocate 1 % of spend to domestic innovators, GDP could rise by $30 billion within five years.