The policy renaissance
Industrial policy, once taboo, has become mainstream. Canada’s clean-tech and EV subsidies now exceed $50 billion in commitments, while the U.S. Inflation Reduction Act reshapes continental competition.
| Category | Public Commitment ($ bn) | Share of GDP | Source |
|---|---|---|---|
| Clean-tech & EV incentives | 50 | 1.8 % | Finance Canada |
| Manufacturing tax credits | 11 | 0.4 % | ISED 2025 |
| R&D and innovation funds | 8 | 0.3 % | NRC 2025 |
Implications for business
- Subsidies alone won’t guarantee global competitiveness.
- The true test is productivity and speed of commercialization.
- Policy coherence across provinces remains fragmented.
What leaders can do
- Anchor corporate investment where incentives align with ecosystems.
- Measure outcomes, not announcements. Track ROI per public dollar.
- Engage policymakers early. Shape funding design to reflect real business timelines.
- Collaborate through industrial alliances. Shared R&D accelerates national scale.
Arcus Insight: Industrial policy is no longer about picking winners — it’s about building platforms. The winners will be those who execute, not those who apply.