Morneau calls on businesses to spend more on R&D

Finance Minister Bill Morneau is calling on the country’s businesses to put more money into research and development.

In a speech to Toronto’s business community Friday, Morneau touted the benefits of R&D investment.

“The public sector needs to work together with the private sector to create the conditions for success for all,” he said. “But I’ll say here, that we need to do more. Business investment in research and development is absolutely paramount to our success and I’m calling on you, as well as business leaders across the country, to work with us as we take on this challenge.”

The speech follows the unveiling of the federal budget last month, which included billions in new stimulus spending and new funding for R&D. The latter was part of what the Liberals are calling their Innovation Agenda.

New spending on innovation will include $2 billion to expand research at universities, $800 million to develop regional clusters and $95 million annually for research grant councils.

“We’re working with stakeholders to identify and build on regional strengths in the country,” Morneau said in his speech, part of a breakfast event put on by the Canadian Club of Toronto and the Empire of Canada. Morneau also talked about the importance of infrastructure funding. He told the audience that Toronto was eligible for a portion of the $3.4 billion in new spending on transportation. The Liberals have already said that $1.49 billion in spending will go toward Ontario’s transportation needs.