Fund will help firms grow, says minister

KITCHENER — Ottawa significantly expanded the funds available to fast-growing tech firms in this week’s fall economic statement, says the federal cabinet minister responsible for innovation.

“We are really betting on companies that are scaling up,” Navdeep Bains, the minister for innovation, science and economic development, said Friday during a visit to Communitech.

In the 2017 federal budget, the Liberals created the $1.26-billion Strategic Innovation Fund. They committed another $800 million to the fund in the fall economic statement.

“It is about us being strategic and thoughtful, making those investments with companies that are really growing and scaling and can be household names,” said Bains.

Earlier this month, Bains was in Kitchener to announce $24 million in funding from the Strategic Investment Fund for North Inc., maker of the Focals smart glasses.

“Other countries are making similar investments in companies as well so we want to make sure we are competitive,” he said.

Used properly, the fund could have a huge impact on the Canadian economy if the right companies get the investments, Bains said.

“How do we create the RIMs, the Nortels, the Bombardiers?” he asked. “How do we create these incredibly successful Canadian companies that are global champions, and that’s what the Strategic Innovation Fund is all about.”

Ottawa added $800 million to the fund after seeing the impact from investments in 32 companies, Bains said.

“We have been able to leverage close to $7 billion, and we’ve been able to secure and maintain 50,000 jobs over the next five years,” he told reporters. “It is about investing in people and creating jobs.”

Bains said the federal government must lead by example to counter the rise in anti-immigrant nationalism, protectionism and populism.

“Really talk about the importance of how being open to trade, investment, business and people really creates more opportunities and more jobs,” he said.

Part of the populist backlash comes from a fear of new technologies, and the federal government must help workers adjust, Bains said.

“There are anxieties among people who are concerned about their jobs, and their kids’ jobs and what technology will do,” he said.

“We believe technology will create more jobs, and more opportunities.”