Canada should invest more money in research and development, according to a C.D. Howe Institute report released this morning.
Authors Nick Pantaleo, Finn Poschmann and Scott Wilkie say Canada lags behind other countries in patent registrations and commercializing new products.
While Canadian companies already receive generous tax breaks on research and development, the study suggests reallocating benefits to reward companies who are able to make money off of the end product of their R&D.
"Canada could adopt a new incentive model from abroad known as an innovation box or patent box within which lower tax rates apply to income from applied innovation," said Poschmann.
"This would encourage businesses to develop, apply for and hold patents in Canada."
