Proposed Government Budget Approaches to Promote Innovation

Aaron Edgar was recently quoted in two Advocate Daily articles related to approaches the Federal Government may take in the upcoming budget to promote innovation.

The First Patent Program is one approach that the House of Commons Standing Committee on Finance recommended that subsidizes expenses incurred by small- and medium-sized businesses obtaining their first patents. “The costs of preparing and filing a patent can be substantial to most startups. Patent law requires filing as soon as possible, but most startups haven’t secured funding at the stage when they should consider filing a patent application,” says Aaron.

Another approach being advocated is an “innovation box” or “patent box”, which is named for the extra checkbox added to corporate tax returns to designate profits that have come from products that incorporate patents and are eligible for a lower tax rate. An innovation box would promote the commercialization of patents within Canada by incentivizing Canadian companies to develop and manufacture their innovative products within Canada. Aaron is quoted in the article about Patent Boxes in Canada for the need to have this type of tax break for the Canadian economy to remain competitive in the global economy.

We are anxiously awaiting the federal budget to see how the Liberal government will promote innovation in Canada. The budget will likely be presented at the end of February or early March.